Australia Macro Forecast Update

Australia's economic growth is projected to slow through 2027 as high interest rates and geopolitical risks weigh on demand. The RBA is expected to hold the cash rate at 4.35% before beginning an easing cycle in late 2027.

Key Takeaways

• 1.The Australian economy is expected to slow through 2026 and 2027 due to high interest rates, a housing market correction, and geopolitical uncertainty.
• 2.The RBA is expected to hold the cash rate at its 4.35% peak throughout 2026 before commencing a modest easing cycle in late 2027.
• 3.Business investment is currently supported by a robust pipeline of data-centre-related projects, which are now a primary driver of the capex cycle.

Table of Contents

• Signs of slowdown
• Cooling housing market
• Data centres are driving business investment
• Easing capacity constraints and rate cuts – eventually

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial