The Economist

The Reserve Bank of Australia is expected to resume raising its key interest rate as policymakers lose patience with stubbornly slow progress on inflation. Economists are weighing the timing and size of the next move, with households and markets bracing for the return of monetary tightening after a pause.

The European Central Bank has raised its key interest rates by 25 basis points, in line with widespread expectations from economists and markets. The decision keeps the bank's campaign against elevated inflation moving forward, and analysts are now watching for signals on whether further tightening will follow at upcoming meetings.

The US Federal Reserve has decided to keep interest rates unchanged even as inflation reaches its highest level in three years. The decision means borrowing costs will stay where they are for now, with policymakers weighing stubborn price pressures against signs of strain in the economy. Markets and economists are watching closely for signals on when, or whether, the central bank might move rates again.

Billionaire hedge fund manager Bill Ackman says the Federal Reserve's latest rate hike could backfire and make inflation worse rather than curb it. His argument adds to a growing debate among investors and economists over whether further monetary tightening is the right response to persistent price pressures.

The Reserve Bank of Australia meets on Tuesday for the sixth time this year, with economists and financial markets treating another interest rate rise as near certain. The question being debated is not whether rates will go up but how many further increases may follow as the bank tries to curb inflation, and what that means for mortgages and household budgets.

The Bank of Japan is increasing its lending scheme that offers funds to banks financing climate action, even as central bankers and economists argue over how far monetary institutions should go in supporting green policies. Supporters see climate lending as a way to address financial risks from global warming, while critics say central banks are overstepping their mandates by pursuing environmental goals beyond price and financial stability.

Mortgage rates in the United States have reached 7%, reigniting concern among homebuyers and homeowners. The Wall Street Journal examines what the rise means for the housing market, with analysts weighing whether higher borrowing costs will cool demand, keep prices elevated, and how long buyers can expect relief amid ongoing economic uncertainty.

Billionaire hedge fund manager Bill Ackman criticized the Federal Reserve's latest rate hike, calling it a mistake that he argues could actually make inflation worse rather than curb it. His comments add to a running debate among investors and economists over whether the central bank is tightening policy too aggressively as price pressures persist.

Economists are split over whether the US Federal Reserve will raise interest rates this year. ABC News reports that analysts disagree on the outlook, with arguments on both sides about inflation pressures, labor market strength, and the risk of slowing growth. The division reflects genuine uncertainty about how the economy will perform in the months ahead, leaving markets and businesses unsure about borrowing costs.

Japan's national debt stands at roughly twice the size of its economy, the highest ratio among developed nations, but economists writing in Fortune argue the United States' debt load of around $40 trillion is the more worrying case. They point to America's faster-growing deficits and political gridlock over spending, contrasting it with Japan's domestic, stable creditor base.

Australia's four major banks are now unanimous in forecasting that the Reserve Bank of Australia will raise interest rates at its meeting next week. The shift to a shared expectation reflects growing conviction among economists that tighter monetary policy is needed to curb persistent inflation, and borrowers are bracing for another increase in mortgage costs.

The Economist examines how climate change is reshaping national security, arguing that rising temperatures, extreme weather and resource pressures are becoming core defense and foreign policy concerns rather than purely environmental ones. The piece highlights how governments are being forced to plan for climate-driven instability, migration and strategic competition alongside traditional military threats.

Big technology companies are rapidly expanding the use of guarantees to back debt for AI datacentres and chips, issuing up to $300bn in commitments in less than a year, according to analysis shared by economist Adam Tooze. A key concern raised is that much of this exposure goes unrecorded on their balance sheets, echoing pre-crisis off-balance-sheet practices and raising questions about hidden systemic risk in the AI buildout.

US mortgage rates have pushed past 7%, prompting questions about where the housing market is headed. Higher borrowing costs are expected to price out more buyers, reduce affordability, and cool home sales further. Commentators are debating whether prices will fall as demand weakens, or whether tight housing supply will keep values elevated despite the steep cost of financing.

The Economist argues that European industry is in better shape than commonly believed. The piece pushes back against pessimistic narratives about Europe's manufacturing decline, suggesting the sector's condition is stronger than prevailing opinion holds.

Germany's rapid shift to electric vehicles is cutting emissions but also eroding fuel-tax revenue that finances road maintenance. The pace of the transition has pushed policymakers to consider redesigning how roads are funded, sparking debate among economists and commentators about alternatives such as distance-based charges and other road-user fees to replace declining fuel taxes.

New orders for US durable goods were unchanged in August, according to the latest Commerce Department figures, falling short of the growth many analysts expected. The flat reading suggests businesses remained cautious on big-ticket investments amid uncertain demand and higher borrowing costs. Economists say the data adds to questions about the strength of US manufacturing heading into the final months of the year.

Eurostat data show domestic producer prices in the European Union rose 1.4% in July 2026. The increase points to continued cost pressures at factory and wholesale level, a key early indicator for consumer inflation across the bloc. Economists and policymakers will be watching whether the rise feeds through to retail prices or reflects temporary energy and input cost movements.

An economist told CBC that Alberta's economy is growing faster than the rest of Canada this year, in an interview explaining the factors behind the gap. The province's outperformance comes amid national debate over regional economic divergence, with Alberta's resource-heavy economy continuing to widen the gap with other provinces in 2024.

MicroStrategy co-founder Michael Saylor has outlined what he calls a 'bill of digital rights', a set of principles he argues are needed to secure prosperity in the emerging digital economy. Saylor, a prominent bitcoin advocate, has long argued that property rights in the digital age require new frameworks. Details of the proposal and reactions from economists and policymakers remain limited so far.

A group of Nobel Prize-winning economists has signed a public letter voicing support for the proposed tax on billionaires' wealth in California. The letter, hosted by economist Gabriel Zucman, a leading advocate of wealth taxation, argues the levy is economically sound. Supporters say endorsements from such prominent economists strengthen the measure's credibility against critics who claim it would drive the wealthy out of the state.

Home asking prices in the United States have declined over the past year, according to a new analysis from Laredo Morning Times. The report also tracks how prices have shifted over the past decade, giving buyers and sellers a longer view of the housing market beyond the recent cooling. The dip adds to ongoing debate about whether the housing market is finally softening after years of steep increases.

Economist and long-time Bitcoin critic Peter Schiff says a quantum computing hack of the cryptocurrency could prompt him to short the entire Bitcoin market. At the same time, he suggested Bitcoin's current cycle could peak at around $600,000. The comments blend his usual bearishness on crypto with an unusually large price target, drawing attention from both Bitcoin supporters and skeptics across financial media.