SYDNEY (Reuters – Australian economic expansion slowed in Q1. A surge of imports, dismal weather and a flood caused a slowdown. But strong domestic demand has prompted more interest rate hikes.

The Australian Bureau of Statistics released data on Wednesday showing that gross domestic product (GDP), rose 0.8% from March quarter to surpass market expectations of 0.5%.

From 4.2% to 3.3% annual growth, it slowed to an impressive 3.3%. Most analysts believe that this will accelerate as more consumers with cash are willing to spend.