Weekly Finance Report – Growth slows in Australia and US

ABS data showed the economy experienced a 14-year low in Consumer Price Index (CPI) growth over the March quarter. Economists had previously predicted a 0.5 per cent gain, but data showed a slowed rate of 0.3 per cent. While lower growth is usually a sign of a weakening economy, the Government remains optimistic about the nation’s finances. The question now remains: will the RBA cut rates next week? With record low CPI growth, slower resource investment, rising unemployment and a high Australian dollar, traders have boosted bets of a rate cut.