FX.co ★ Australia Leading Index Subdued

The Westpac-Melbourne Institute Leading Economic Index for Australia showed no change in June 2025, following a revised 0.1% increase in May. The six-month annualized growth rate fell to 0.03% from 0.11%, indicating a trend towards average growth after a slightly above-average beginning to the year. Westpac predicts the Australian economy will grow by 1.7% in 2025, which is an improvement over the 1.3% increase in 2024, yet still lacks impact. Matthew Hassan, Head of Australian Macro-Forecasting at Westpac, remarked that "This means annual growth has only averaged 1.5% since 2022, representing a cumulative decline in per capita terms and significantly below Australia's twenty-year average of 2.0%." In terms of monetary policy, Westpac anticipates the Reserve Bank of Australia's gradual easing cycle to continue, forecasting a 25 basis point rate cut in November, with two further 25 basis point reductions expected in the first half of 2026.