Australia’s economy grew at a slower rate than expected in the third quarter, raising expectations of a central bank interest rate cut early next year and sending the currency to its lowest level in seven months.

Treasurer Jim Chalmers, speaking at a press conference after the data’s release on Wednesday, said the 0.3 per cent growth in GDP during the three months to September was “very weak” and “soft”, as high interest rates stifled consumer demand and an uncertain global outlook, including a weaker Chinese economy, damped trade.

The tepid growth rate was weaker than the 0.5 per cent anticipated by economists. The year-on-year increase was 0.8 per cent, compared with an expected 1 per cent, and was the lowest in three decades outside the pandemic.