GDP lifts rate hike odds; Telstra reveals outage failures; world to miss climate target
Published: September 02, 2026
GDP lifts rate hike odds; Telstra reveals outage failures; world to miss climate target
News in brief
Telstra has revealed the failures behind its major network outage in July. An independent review found a missing software update, too few specialists and inadequate monitoring contributed to the outage, which disrupted Triple Zero calls, EFTPOS systems and train networks.
Australia’s AI boom is competing with the housing sector for tradies. New modelling suggests Australia will need another 72,000 energy tradespeople by 2030, as data centres, housing construction and the renewable energy transition all chase the same workers.
About $1 billion worth of Australian mortgages are switching lenders every day. Borrowers moved $371 billion in home loans in the year to June, intensifying competition between banks just as growth in the overall mortgage market is expected to slow.
The world is now expected to overshoot the Paris Agreement’s 1.5-degree global warming ambition. A new UN report says warming could peak at around 1.8 degrees even under its most optimistic scenario, or reach 2.6 degrees under current government policies.
Britain’s struggling pubs are fighting new licensing proposals that favour customers sitting at tables rather than standing at the bar. The industry warns the changes could small pubs already battling higher taxes, wages and energy costs, with an average of two already closing each day.
Fear-o-meter
EY Chief Economist Cherelle Murphy:
"Australia’s economy is caught between resilient demand and weak supply-side performance. These National Accounts will do little to ease the Reserve Bank’s concerns about the inflation outlook, and we continue to expect that another rate rise will soon be delivered.
Beyond the immediate numbers, there are grounds for cautious optimism. Households facing high interest rates and costs are investing in ways to reduce future expenses, most visibly through electric and hybrid vehicle purchases. Businesses maintained a high level of investment in digital infrastructure, despite an easing from the previous quarter, while dwelling construction strengthened. Over time, these investments could lift the economy’s productive capacity.
But building and fitting out data centres and importing advanced equipment will not, by themselves, generate productivity growth. The gains will depend on businesses adopting the technology effectively and combining it with stronger skills, better management, redesigned workflows, greater competition and reliable energy infrastructure."
Fear & Greed Q+A today
On yesterday's June quarter GDP data, and what it means for interest rates:
“It’s definitely increased the risk of a September rate rise. We’ve seen lots of economists change their views, even some who weren’t even expecting another rate rise to now expect a September rate increase, mostly after the July CPI figures.
I think September’s just a live meeting. Our forecast right now is still for November, so we haven’t officially changed our view.
We still get another print on the labour force and we... want to see what that looks like.
I’d say it’s going to be a mixed board decision. When I looked at the GDP data, I thought, maybe they will decide to increase rates in September, but I think it’s just way too close to call. I wouldn’t be confident sticking out my neck and saying September’s a done deal. I’d just say there’s a high risk of it happening.”
Australia’s economy is growing faster than expected, and that’s increased the chances of another interest rate rise. GDP grew 0.4% in the June quarter and 2.1% over the year, beating forecasts and coming in slightly stronger than the Reserve Bank expected. Household spending contributed about half the quarterly growth, helped by a surge in vehicle purchases, particularly electric and hybrid cars.
The underlying picture remains subdued. GDP per person was flat and labour productivity hasn’t improved over the past year, leaving workers no more productive than seven years ago.
The concern is that even with three interest rate rises, the economy isn’t slowing quickly enough to bring inflation sustainably back into the RBA’s 2–3% target band. Markets lifted the probability of a September rate rise to around 70% after the GDP figures, with a hike by November now fully priced in.
Adding to the pressure, Australian government bond yields have hit 15-year highs as rising oil prices and inflation concerns drive a global bond sell-off, pushing borrowing costs higher across the economy.
Greed-o-meter
| Rank | Name | Net worth $B (USD) | Monthly change $B (USD) |
|---|---|---|---|
| 1 | Gina Rinehart | 25.6 | +0.5 |
| 2 | Harry Triguboff | 23.5 | +0.5 |
| 3 | Andrew Forrest & family | 17.9 | -0.4 |
| 4 | Mike Cannon-Brookes | 12.6 | +4.1 |
| 5 | Scott Farquhar | 12.3 | +4.1 |
| 6 | Anthony Pratt | 11.7 | 0 |
| 7 | Vivek Chaand Sehgal | 8.8 | +0.7 |
| 8 | Frank Lowy | 8.7 | -0.1 |
| 9 | Cliff Obrecht | 7.6 | 0 |
| 9 | Melanie Perkins | 7.6 | 0 |
Source: Forbes Australia's Real-Time Billionaires, 2 September 2026.
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The combined wealth of Australia's ten richest people has grown by $US9.4 billion in just one month, taking their total wealth to $136.3 billion, according to Forbes. Almost all of that increase came from Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar, who added $4.1 billion each as the company’s shares surged more.