SYDNEY, Dec 5: Household spending propelled Australia’s economy in the third quarter and pushed year-on-year growth to its highest level in three years at 4.3 per cent, economists said on Wednesday.

The nation’s GDP grew at 1.0 per cent quarter-on-quarter, up from 0.7 per cent in the previous three months, according to national accounts data released by the Australian Bureau of Statistics.

The data for the period to September followed a warning from the central bank that it remained concerned about inflationary pressures despite leaving its target cash rate at 6.75 per cent after raising it a quarter percentage point last month.

The Reserve Bank of Australia (RBA) said it expected continuing strong domestic demand to put inflation above 3.0 per cent, the top of its target band, in the first half of 2008 but to “decline somewhat thereafter”.

Economists suggested another interest rate rise was likely after the central bank’s first policy meeting of 2008 on February 5.

—AFP