Interest rate rise unlikely after sluggish quarter of GDP growth, Australian economists say

One asset that has withstood higher interest rates has been housing, with the value of the nation’s dwellings rising almost 2% – or $196.8bn. Photograph: Lukas Coch/AAP

Australia’s economy is experiencing another “very soft quarter” of growth, all but ruling out another interest rate rise by the Reserve Bank despite inflation easing at a slower pace, said Steven Halmarick, CBA’s chief economist.

CommBank’s household spending index, which is based on the outlays of about seven million CBA customers, fell 0.3% in February to 141.6 points. The tally was lower than in November, indicating spending over summer shrank.