Australian shares tumbled on Friday, as hopes of an early interest rate cut were doused by disappointing U.S. growth data, coupled with the Australian inflation slowing less than expected earlier this week.

The S&P/ASX 200 benchmark index closed 1.4% lower at 7,575.9. The benchmark ended flat on Wednesday.

On Thursday, data showed that the world's largest economy grew at the slowest pace in two years for the quarter, reinforcing expectations that the Federal Reserve would not cut interest rates before September.

Locally, the Australian consumer price inflation slowed less than expected in the first quarter on Wednesday, driving investors to push back interest rate relief expectations from the central bank.

"We now expect policy to remain on hold for longer, with the first rate cut now forecast to occur in November rather than September," Westpac analysts said in a note.

Rate-sensitive financials declined 1.6% to snap a three-day rally, with the "Big Four" banks losing between 1.4% and 1.8%. However, the sub-index gained 0.8% for the week, after three weeks of consecutive losses.

Miners lost for a third straight session, down 1.4%, as iron ore futures ticked lower on higher China portside inventories.

BHP Group plunged 4.5% in its worst session since Sept. 7, after the world's largest-listed miner offered $38.8 billion for London-listed miner Anglo American on Thursday. The stock lost 3.2% this week, its worst weekly drop since March 11.

BHP fell as investors are worried about the dilution and a possible counter bid from other groups, said Damian Rooney, director of equity sales at Argonaut.

Bucking the trend, gold stocks jumped 3.4%, tracking bullion prices higher.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index lost 1.2%, the most in six months. Although, it posted a weekly gain of 0.1% after losing for three weeks.

(Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)