The Westpac–Melbourne Institute Leading Economic Index was flat month-on-month in August, unchanged from the previous month. Meanwhile, its six-month annualised growth rate improved to -0.09% from -0.17% in July. Momentum remained soft but has strengthened since mid-year, with the index now only marginally below trend heading into late 2026 and early 2027. Q2 GDP growth showed the Australian economy holding up better than expected despite a global energy shock and higher interest rates. Activity appears to be stabilising at a slow pace rather than stalling, supported by resilient households and a strong ramp-up in data-centre investment. Westpac expects the RBA to raise rates again but, on balance, to wait for the next comprehensive quarterly inflation update on October 28. As a result, the September meeting is likely to deliver a “very hawkish hold.”