Rate cut talk increases as economy slows to 2.3 per cent growth

Matthew Cranston and John Kehoe

Updated Mar 7, 2019 – 9.17am, first published at Mar 4, 2019 – 9.00pm

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A sharp slowdown in economic growth in the December quarter has some economists tipping interest rate cuts could come as early as July and financial markets have priced in a full 0.25 of a percentage point rate reduction by November.

The economy barely grew last quarter, eking out just 0.2 per cent growth, pulling down the annual growth rate to 2.3 per cent, below market expectations and casting doubt on the RBA's 3 per cent growth forecast for this year.

Matthew Cranston was The Australian Financial Review’s United States correspondent

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.