GDP Beats Forecasts as Rate Hike Looms, Housing Downturn Deepens, and Iran Conflict Reignites

Australia's economy grew 0.4 per cent in the June quarter, beating forecasts and setting the stage for a Reserve Bank rate rise on September 29. The modest growth, plus a 2.1 per cent annual expansion, shows resilience but no sign of the slowdown needed to tame inflation. Government borrowing costs hit a 15-year high, while 93 per cent of suburbs saw home values drop last month — a double whammy for borrowers and the property market.

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The housing...