Another Reserve Bank interest rate rise and lingering inflation show why Australia faces a lost decade of living standards

Oct 2, 2026 – 3.39pm

Australia’s economic troubles deepened this week when the Reserve Bank of Australia raised interest rates for the fourth time this year, new inflation figures showed entrenched price pressures, and the government’s budget deficit got worse.

Australians will need to get used to this extended post-pandemic economic hangover as the new normal, which threatens to stretch from the current count of four years to become a lost decade for living standards.

Loading…