Australian Treasurer Jim Chalmers said Friday that the nation's economic growth will fall below the 1.75 percent forecast made in May's budget.
The revised outlook reflects the cumulative effect of interest rate increases by the Reserve Bank of Australia and persistent inflation, which have dampened consumer spending and business investment.
The Reserve Bank has raised its benchmark rate multiple times to combat inflation, a policy that inevitably slows economic activity. Chalmers' statement signals the government now recognizes these tightening financial conditions will produce measurable deceleration from prior expectations.
Chalmers did not specify the magnitude of the downward revision.
