Week in review
- Australia 3Q real GDP 2.1% y/y
- Australia house prices 7.1% y/y
- Eurozone CPI inflation 2.4% for November
Week ahead
- RBA official cash rate
- Australia labour market report
- U.S. FOMC decision
Thought of the week
The economy expanded by less than expected in the September quarter, mainly due to the drag from inventories. However, underlying conditions were more resilient. Household consumption has been rising year-on-year and is now in line with the 20-year average. The household savings rate increased to 6.4%, likely reflecting higher disposable incomes rather than a pullback in spending. This elevated savings rate should help support consumption as the effects of tax cuts and monetary easing fade. Overall, third-quarter growth of 2.1% aligns with the RBA’s forecasts and its view of long-term potential. Consequently, the RBA is expected to remain more focused on upside risks to the economy that could drive inflation higher, rather than on downside risks to growth. This means the RBA is unlikely to deviate from the current policy setting at this week’s meeting.
Australia’s household consumption growth back to average
Household consumption, change year-on-year


Source: ABS, FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 5/12/25.
All returns in local currency unless otherwise stated.
Equity price levels and returns: Levels are prices and returns represent total returns for stated period.
Bond yields and returns: Yields are yield to maturity for government bonds and yield to worst for corporate bonds. All returns represent total returns. AusBond Comp is the AusBond Composite 0+ Yr, AusBond IG is the AusBond Credit 0+ Yr both provided by Bloomberg.
Currencies: All cross rates are against the Australian dollar. An appreciation of the foreign currency against the Australian dollar would be positive and a depreciation of the foreign currency against the Australian dollar would be negative.
Material ID: 0903c02a82467ab5

