The Economist

The Reserve Bank of Australia is widely expected to raise the cash rate to 4.6% at its upcoming board meeting, which would take borrowing costs to their highest level since 2011. The Guardian reports markets and economists are bracing for the hike, with homeowners facing further pressure on mortgage repayments as the bank continues its fight against persistent inflation.

The Financial Times argues that, for once, the US Federal Reserve has prioritised ordinary American households and small businesses over financial markets. The comment reflects debate over the Fed's policy direction and who its decisions ultimately serve. It is prompting discussion among economists and investors about a possible shift in how the central bank weighs Wall Street against the broader economy.

The Bank of Japan is increasing its lending scheme that channels funds to banks supporting climate action, a programme first introduced in 2021. The move comes as policymakers and economists argue over how far central banks should go in supporting green goals, with critics warning that climate policy sits outside monetary mandates and supporters arguing financial stability depends on it.

The Reserve Bank of Australia meets for the sixth time this year, with economists and financial markets broadly expecting another interest rate rise. The key question now is how many further increases could follow as the bank works to bring inflation down. Borrowers are watching closely, with each rise adding pressure to mortgages and household budgets across Australia.

Economists polled by Reuters expect euro area consumer prices to have risen 3.5% year-on-year in September, up from 3.2% in August, which would mark the fastest pace in nearly three years. Eurostat's flash estimate is due on Friday, and markets are watching whether the upturn proves persistent enough to influence European Central Bank policy on interest rates.

United States retail sales increased modestly in August 2026, with core retail sales rising 3.47% year-on-year, according to a report by Fibre2Fashion. The figures point to continued, though measured, growth in American consumer spending. The modest pace suggests demand is holding steady without overheating, a reading economists and industry watchers typically weigh against inflation and interest-rate expectations.

The Bruegel think tank argues that Europe should stop banning interest payments on digital money, calling current restrictions outdated. The proposal would allow holders of digital euros or similar instruments to earn returns, touching on an ongoing debate over the design of central bank digital currencies and how they compete with commercial bank deposits.

Norwegian retail sales returned to growth in August, according to a report highlighted by TradingView. The rebound suggests consumer demand in Norway picked up after a weaker stretch, though no figures, drivers or follow-up commentary were included in the coverage. Economists and market watchers typically track the monthly series for signals on household spending and the outlook for Norwegian interest rates.