Australia's economy will grow less than expected in coming years because of a global slowdown, high inflation and rising interest rates, Treasurer Jim Chalmers will say on Thursday, according to excerpts of a speech seen by Reuters. Chalmers will tell parliament that economic growth in the 2021/22 fiscal year that ended on June 30 is expected at 3.75%, down from a forecast of 4.25% made by the previous government in March. Growth forecasts for 2022/23 and 2023/24 have also been revised down by half a percentage point to 3% and 2%, respectively.

Australia’s central bank on Tuesday lifted its benchmark interest rate for a third time in three straight months, changing the cash rate to 1.35% from 0.85%, Reuters reported. The Reserve Bank of Australia’s half a percentage point rise was the same size as its June increase. When the bank lifted the rate by a quarter percentage point at its monthly board meeting in May, it was its first rate hike in more than 11 years. Increases at the June and July board meetings were widely expected.

Australia's central bank decided to raise interest rates by a larger 50 basis points this month because policy would still be very stimulative and it needed to be normalised to stop high inflation becoming entrenched, Reuters reported. Minutes of its June 7 Board meeting, showed the Reserve Bank of Australia (RBA) discussed lifting the 0.35% cash rate by 25 basis points or 50 basis points and chose the latter as inflation had already outpaced all expectations.

The Reserve Bank of Australia “will do what’s necessary” to bring inflation back down to its 2-3% target, Governor Philip Lowe said, as he warned interest rates would need to push higher to achieve that goal, Bloomberg News reported. Inflation could accelerate to as much as 7% by year’s end and is unlikely to begin slowing until the first quarter of 2023, Lowe said in an interview with Australian Broadcasting Corp.’s 7:30 Report on Tuesday.

Australia’s central bank is poised to implement back-to-back interest-rate increases for the first time in 12 years on Tuesday, economists and traders predict, with the key debate centering on the size of the move, Bloomberg News reported. Reserve Bank of Australia Governor Philip Lowe and his board will raise the cash rate by 25 basis points to 0.60%, according to 15 of 29 economists surveyed by Bloomberg. Three analysts see a half-point rise, while the remaining 11, as well as money markets, forecast a larger 40-basis-point hike.

Australia’s largest home building company Metricon Homes has announced that it is still in a strong position when confronted with reports about its insolvency. The company officials had a meeting with Victorian Treasurer Tim Pallas on May 19, and Metricon chief executive Peter Langfelder affirmed that everything was normal. “We’re always in contact with government,” he told reporters. “We had a fantastic engagement with them.

Liquidators for failed cryptocurrency exchange MyCryptoWallet claim the business may have traded whilst insolvent for three years before its collapse, and have drawn into question $3.4 million in ‘unfair or preferential’ transactions made by the company’s founder, the Sydney Morning Herald reported. MyCryptoWallet was a Melbourne-based exchange founded in 2017 by Jaryd Koenigsmann, which allowed users to buy and sell popular cryptocurrencies such as Bitcoin and Ethereum.

Passengers are starting to arrive in Australia as it allowed travel by double-vaccinated visitors, following almost two years of strict travel bans introduced to stem the spread of Covid-19, Bloomberg News reported. It’s also a long-awaited day for the tourism sector -- which employed about 5% of the nation’s workforce and contributed 3% to the economy prior to the pandemic -- and was already reeling in early 2020 from devastating wildfires.

Australia concluded its quantitative easing program, leaving the Reserve Bank with more than 40% of government bonds on issue and raising questions about what it will do with the pile of assets, Bloomberg News reported. The RBA on Thursday conducted its final A$1.6 billion purchase of securities under a program that tripled its balance sheet to about A$650 billion ($465 billion). Indeed in 2021 it bought more than three times more debt than the government issued, the largest ratio across the world’s six largest developed bond markets.