Runners jog along the boardwalk past the Sydney Harbor Bridge.
(Bloomberg) — Australia’s economy grew at a surprisingly softer pace last quarter even as the details showed domestic demand held up and labor costs stayed elevated, a result that whipsawed markets.
Gross domestic product advanced 0.4% in the three months through September, slower than the predicted 0.7%, government data showed Wednesday. On an annual basis, the economy expanded 2.1%, the fastest pace since the third quarter of 2022.
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Markets initially read the report as disappointing, sending the currency and bond yields lower in response to traders timming bets on an interest-rate hike next year. They later reversed course and overnight-indexed swaps now imply a 70% chance the Reserve Bank will raise borrowing costs by the end of September.
Investors are…
