Australia

Australia Inflation Cools Further as Quarterly CPI Misses Expectations

Australia's inflation slowed more than expected in the second quarter, adding to evidence that price pressures continue to ease and strengthening the case for additional monetary policy easing by the Reserve Bank of Australia (RBA).

CPI (QoQ): 0.6%
Expected: 0.7%
Previous: 1.4%

CPI (YoY) (Q2): 3.9%
Expected: 4.1%
Previous: 4.1%
Australia NAB Business Confidence Improves in June but Remains Negative

Australian business confidence improved in June but remained in negative territory, highlighting that firms are still cautious despite a modest improvement in sentiment.

The National Australia Bank (NAB) Business Confidence Index rose to -5 in June from -14 in May, marking a notable rebound from the previous month. While the result exceeded the prior reading, confidence remains below zero, indicating pessimists still outnumber optimists among Australian businesses.
RBA Holds Interest Rates Steady at 4.35%

The Reserve Bank of Australia left its benchmark cash rate unchanged at 4.35% at its June policy meeting, matching market expectations and marking another pause in its tightening cycle.

The decision reflects the central bank's cautious approach as it assesses progress in bringing inflation back toward its target range while monitoring the resilience of the labor market and economic growth.
Australia's economy grew just 0.3% quarter-over-quarter in Q1, significantly below the 0.5% consensus forecast and sharply lower than the 0.9% growth recorded in Q4. On an annual basis, GDP rose 2.5%, matching the previous quarter but missing expectations of 2.7%.
Australia’s construction sector remained under pressure in April, although the decline in building approvals was less severe than in the previous month. Building approvals fell 3.4% month-over-month, worse than expectations for a 1.5% decline, following a sharp 10.5% drop in March.
Australia’s private capital expenditure surged 6.5% quarter over quarter in Q1, massively beating the 1.2% forecast and accelerating sharply from the previous 0.7% increase.
Australia’s construction activity surged in the first quarter, with Construction Work Done rising 3.4% quarter over quarter, far above the 0.8% forecast and sharply higher than the previous 0.2% increase.
Australia’s unemployment rate rose to 4.5% in April from 4.3%, coming in above market expectations of 4.3% and signaling a weakening labor market. Meanwhile, employment unexpectedly fell by 18,600 jobs, missing forecasts for a 16,700 increase and reversing the previous month’s 23,300 gain.
Australia’s home loans data showed a sharp slowdown in lending activity.

Home Loans (MoM, Q1): -4.3%
Previous: +9.4%
Australia’s NAB Business Confidence index remained deeply negative in April, though it showed a slight improvement. Business confidence came in at -24 versus the previous -29 reading.
Video Thumbnail
05-19-26WS Investor
Video Thumbnail
05-11-26WS Investor
Video Thumbnail
05-08-26Global Finance News
Video Thumbnail
04-30-26WS News
Video Thumbnail
04-22-26WS News