Australian economy’s growth beats expectations

<p>The Australian economy is growing faster than expected.</p>

The latest growth figures for the Australian economy have indicated that it is growing faster than analysts had predicted.

GDP in the country expanded 2.6 per cent during the second quarter of the year compared with 12 months ago, with a rise of 0.6 per cent recorded on the previous three-month period.

Matthew Johnson, an interest rate strategist at UBS, told BBC News: "This is probably a touch above what the Reserve Bank of Australia was expecting and this would decrease the probability of a near term rate cut."

Australia's central bank elected to keep interest rates unchanged when it met on Tuesday (September 3rd), although its has been cutting the nation's base rate in recent months.

Brian Redican, a senior economist at Macquarie Bank, explained that despite the release of the new figures, the Australian economy remains under pressure.

Australian airline Qantas helped to boost the economy in the second quarter by recently confirming it made a profit of A$6 million (£3.5 million) over the 12-month period to the end of June 2013.

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