Australian Prime Minister Morrison said he expects the National Account data to be released on Wednesday to show that the June quarter was “very difficult.” Previously, the domestic and global headwinds are getting bigger and bigger. It is expected that in the year ending June 30, Australia’s economic growth will stagnate at a level slightly above 1%, which is lower than the worst period of the global financial crisis. To break the 1.7% growth rate in the 2008-09 fiscal year, the Australian economy must grow 0.8% this quarter. But the market believes that there is a downside risk to the average expected growth rate of 0.6%, making policymakers face the worst results since 2000. In 2000, the global economy was hit by a sharp fall in technology stocks.
The Reserve Bank of Australia (RBA) will meet on Tuesday to decide whether to cut interest rates again to a historical low of less than 1% and consider other options to stimulate the economy when necessary. The market tends to expect the Reserve Bank of Australia (RBA) to keep interest rates unchanged, but it believes that by November it will almost certainly cut interest rates to 0.75%.
