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Economy

Yesterday

Financial Advice Association Australia CEO Sarah Abood says the CLSR blowout is existential.

Financial planners panic over $50m compensation blowout

A blowout in the cost of compensating victims of financial misconduct threatens the viability of the industry funded scheme, advisers say.

  • Jonathan Shapiro
Peter Dutton spoke in Sydney on Friday.

Dutton’s economic pitch is all vibe, not details

Dutton’s back-to-basics approach on economics offers a sharp contrast to Labor’s bigger government record of the past three years, but policy proposals are scant.

  • John Kehoe
Economists say the tight jobs market and increasing government spending will mean the RBA will deliver just three or four rate cuts in total this year.

RBA rate cuts coming – but don’t expect a windfall

Economists say the tight jobs market and increasing government spending will mean the RBA will deliver just three or four rate cuts in total this year.

  • Michael Read
There has been political refusal to face up the end of Australia’s great prosperity boom.

Falling behind: three reasons why the RBA will sit on its hands

Economists and analysts are getting excited about a rate cut but inflation risks, and lack of any credible economic agenda, will likely leave them disappointed.

  • Michael Stutchbury
Christine Lagarde, president of the European Central Bank, said Europe’s economy will remain frail in the near term, with risks to the outlook still tilted to the downside.

ECB cuts rates for fifth time as eurozone economy flat lines

Investors maintained bets for further easing, pricing an additional 70 basis points of cuts during the rest of 2025, which would lower rates to near 2 per cent.

  • Alexander Weber, Mark Schroers and Jana Randow
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January

Tobacco taxes drop to nine-year low as black-market ciggies boom

A 282 per cent increase in the tobacco excise rate has turned smokers to the black market and put a big dent in the federal budget.

  • Michael Read
The open-source DeepSeek has matched ChatGPT without the secrecy and expense of the US platform.

AI war highlights need to work with both superpowers

Readers’ letters on the artificial intelligence race between the US and China, road tax for electric vehicles and life with limited mobility.

Michele Bullock.

Jerome Powell held. So should Michele Bullock

The US Federal Reserve held rates constant as it waited to see what policies Trump implements. The Reserve Bank should also wait until after our election and it knows what policies will be implemented here.

  • Ed Shann

Trump lashes Powell after Fed keeps rates on hold

The president sharply criticised the Federal Reserve for defying his calls to lower interest rates, and instead signalling a new wait-and-see approach.

  • Matthew Cranston
CEOs are keeping a close eye on RBA governor Michele Bullock’s interest rate calls and press conferences.

No side of politics has a plan to make you better off

The depressing reality is that no party can convincingly articulate a strategy to improve Australians’ fortunes in the next three years and beyond.

  • The AFR View

EV tax should be part of road funding revamp

Readers’ letters on taxes for electric vehicles, Grace Tame’s protest against Rupert Murdoch, Donald Trump’s US presidency and co-ownership of property.

Governor Bullock was at the forefront of the RBA “experiment” with a cautious approach (relative to the rest of the developed world) in raising the policy rate.

CPI pushes the rate cut door wide open

RBA is overachieving on inflation and should “break on through to the other side” to reduce the policy rate in February.

  • Stephen Miller
Treasurer Jim Chalmers, is happy with the fall in inflation

Falling inflation boosts Labor’s election push

The Albanese government will be even more relieved than the Reserve Bank that the latest consumer price index shows a further drop in inflation.

  • Jennifer Hewett
Reserve Bank governor Michele Bullock and Treasurer Jim Chalmers.

February rate cut on the table, but not a done deal

There is a plausible reason to cut interest rates next month, but also a reasonable case to hold steady and await more information on the economy.

  • John Kehoe
Reserve Bank governor Michele Bullock. looks set for her first rate move next month.

Two other interest rate debates will decide where the ASX goes next

A February rate cut is all but locked in. But with the Australian sharemarket back near record highs, investors need to consider two other big questions. 

  • James Thomson
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Treasurer David Janetzki says measures to rein in the budget will be necessary.

Debt blowout shows budget honesty is ‘crooked’ in Queensland

The shocking budget blowout after the state’s election last year shows a massive institutional failure that has lessons for governments across the country.

  • John Kehoe
The sharp rise in consumer prices over the past three years has pushed real wages down to 2011 levels, leading to widespread discontent among voters.

Living standards to stagnate until 2030: Deloitte

Deloitte predicts it will take another five years before real wages return to their pre-pandemic levels, complicating Anthony Albanese’s bid for re-election.

  • Michael Read

Trump may deal China a major win

Readers’ letters on Donald Trump’s tariff threats, US climate policy, a tax overhaul for electric vehicles and Grace Tame.

The sudden emergence of DeepSeek should not be a surprise given the US has long dealt with competitive threats in technology.

China’s AI leap means security must trump economics for Australia

Australia’s dilemma is that there is a tension in balancing the commercial advantages of cheaper Chinese technology with our national security interests.

  • The AFR View
Former Macquarie Group chief executive Nicholas Moore last October.

Ex-Macquarie boss rails against Mosman NIMBY-ism

In a rare interview, Nicholas Moore has highlighted the need for more homes in inner-city suburbs such as the Sydney harbourside suburb of Mosman where he lives.

  • John Kehoe
Substantial productivity improvements in the economy are still possible, but the regulation of our economy is extraordinary.

Nicholas Moore: blame bigger government for falling living standards

Much of the cost-of-living malaise in Australia is the result of policies that have expanded the role of government at the cost of long-term productivity.

  • Nicholas Moore and Tom Switzer
The Panama Canal (pictured) has been criticised by US President, Donald Trump, as being operated by China.

Trump is wrong: Climate change, not China, is the threat to Panama Canal

Any loss of capacity, which is more likely to be caused by drought will ripple through supply chains and push up costs in Australia.

  • Michael Bell
The Australian Open 2025.

Brisbane should learn lessons of Australian Open’s success

It’s always tough for governments to justify spending money on sporting venues. Yet, long-term thinking and the best option for leaving a legacy should be factored into the plans for Brisbane’s Olympic stadium.

  • The AFR View
While economists expect inflation is falling faster than the RBA’s forecast, the question is whether the decline is rapid enough for the central bank to shift gears.

Inflation figures make or break for pre-election rate cut

While economists expect inflation is falling faster than the RBA’s forecast, will the decline be rapid enough for the central bank to shift gears?

  • Michael Read
China’s Premier Li Qiang and Prime Minister Anthony Albanese spoke about ending trade bans on Australian exports  in 2024.

Australia-China trade will be caught in middle of Trump’s tariff war

Australia is now more dependent on a single market than it has ever been since the late 1940s when our biggest customer was the United Kingdom.

  • Richard McGregor

Original URL: https://www.afr.com/news/policy/budget