Global markets navigated a complex week as central bank policy paths continued to diverge sharply across regions.

In short:
What: Australia’s inflation rose to 3.8% and private capex surged 6.3%, removing the case for RBA rate cuts.
Why it matters: Higher-for-longer rates put Australia out of sync with global easing and lift funding and borrowing costs.

What: The UK budget offered more fiscal room but was overshadowed by leaked OBR forecasts.
Why it matters: Markets welcomed the near-term support but longer-term fiscal credibility remains uncertain.

What: Japan signalled a possible December rate hike, pushing short-term yields to GFC-era highs.
Why it matters: A shift away from ultra-easy policy could redirect global capital flows and lift the yen.

What: China’s PMIs contracted again across manufacturing and services.
Why it matters: Weakness in China threatens Q4 momentum and raises the likelihood of further stimulus in 2026.

Get access to the graphs: www.investsense.com.au/industry-articles/central-banks-diverge-as-australia-charts-its-own-course 

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