Australian shares suffer worst daily loss in 11 months
The ASX200 has fallen almost three per cent, wiping out all its gains for the year amid the spiralling war in Iran.
The economy
After three years of declining profits, Australian corporations as a whole returned to growth this reporting season, led by banks including CBA and NAB.
Australia's gross domestic product expanded by 0.8 per cent in the last three months of 2025, lifting the economy's growth rate over the year to 2.6 per cent.
Despite Jim Chalmers' claims that public demand isn't fuelling inflation, official figures show federal spending is pushing the economy above its speed limit.
The economy
Bank chief’s big watch on inflation cost of Iran action
It's unclear if financial conditions can bring inflation under control or whether conflict in Iran will make it worse, the Reserve Bank governor says.
Update
Stubborn inflation could spell further rates pain
A slight uptick in inflation is a cause for concern for Treasurer Jim Chalmers, giving the Reserve Bank more ammunition for future interest rate rises.
The economy
Weaker-than-expected jobs growth defies expectations
Economists had predicted a fall in the nation's unemployment rate but the figure has held steady - a key reading ahead of the RBA's next interest rate decision.
Mortgage holders will face higher borrowing costs after the Reserve Bank raised interest rates by 0.25 percentage points in a widely-anticipated decision.
Jim Chalmers says the next head of Australia's financial watchdog, Sarah Court, is an experienced litigator and leader and will make a positive impact.
Master Builders ACT chief executive Anna Neelagama says Canberra is facing a second wave of inflation, warning pressure on households and builders is “not over”.
Analysts are warning of an imminent Reserve Bank rate hike, after the central bank's preferred inflation measure came in above forecast.
Upcoming inflation data will be make or break for a Reserve Bank rate hike decision following stronger than expected jobs figures, economists say.
Global economic body the OECD has called on Australia to rein in the NDIS and make changes to property taxes to help fix the budget and boost productivity.
A sharper-than-expected fall in inflation will encourage the Reserve Bank of Australia, but underlying price growth remains too hot for comfort.
Bridging the gap in wealth between older and young Australians will require a major recalibration in housing attitudes and policies, a leading economist says.
For the first time in eight years, the net impact of the government's decisions improved the federal bottom line - but medium-term forecasts are less rosy.
The mid-year budget update will project deficit of nearly $37 billion for current financial year.
More than $12 billion in program cost blowouts demand tighter spending in other parts of the federal budget, the treasurer is warning Australians.
The return of inflation has forced the Reserve Bank to keep interest rates on hold at its last meeting of the year and raised the spectre of rate hikes in 2026.
