Australia’s central bank raised interest rates on Tuesday as the conflict in Iran worsened existing concerns around an acceleration in inflation and the country’s reliance on oil imports, the Wall Street Journal reported. The Reserve Bank of Australia increased the official cash rate to 4.10% from 3.85%. That marked the second increase this year and investor bets have shifted toward another rate rise in May as officials battle to rein in price pressures.

The Reserve Bank of Australia is likely to raise interest rates this week to combat a worsening inflation outlook but it needs to dispense with vague messaging and signal forcefully that it won’t tolerate inflation above its target, the Wall Street Journal reported. “The RBA needs to stop equivocating on how long it is going to take to get inflation back to target,” John Simon, a former head of economic analysis at the central bank, said in an interview.

Australia's economy grew at the ​fastest annual pace in almost three years in the December quarter, data showed on Wednesday, a pickup that ‌reignited inflation and required a hike in interest rates to tamp demand down, Reuters reported. The outlook, however, has been darkened by the Middle East conflict, which has effectively halted oil flows through the Strait of Hormuz and pushed prices up more than 10%. Australia is a net energy exporter but sustained oil rises act ​as a tax on consumers and businesses.

After the Supreme Court struck down the legal basis for President Trump’s sweeping tariffs on Friday, many U.S. trading partners saw the tariff rate on their goods lowered from what they faced before the ruling. But for others, like Britain and Australia, the math went the other way, the New York Times reported. Britain became the first country to reach a trade deal during Mr. Trump’s second term, and both governments emphasized the “special relationship” between the two countries.

Jason Sward from Queensland, Australia, has landed himself with 2.5 years behind bars for multiple indictable offences, with six months imprisonment for each offence, to be served concurrently, AccountantsDaily.com reported. Sentenced in the Southport District Court, Sward was released on recognisance of $2,000 after pleading guilty to the six offences of:

· Two offences of disposing of property within 12 months before a petition has been filed with intent to defraud creditors.

· Disposing of property after a petition had been filed with intent to defraud creditors.

Recent research from the Australian Financial Security Authority (AFSA) has unveiled a jump in personal insolvencies during December 2025, with a total of 1,063 new personal insolvencies being recorded over the month, AccountantsDaily.com.au reported. This was noted to be a rise from 992 in November 2025 and a rise from 828 in December 2024, with the most common employment industries entering personal insolvency being construction, health care and social assistance.

Australia's labour market has stabilised from a slowdown and remains tight, consistent with stubborn inflationary pressures in the economy, a senior central bank official said on Thursday, Reuters reported. Sarah Hunter, assistant governor at the Reserve Bank of Australia, said the central bank was closely monitoring conditions in the labour market to help assess how much the pick-up in inflation could be temporary.