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flag Australia’s central bank raised rates in Feb 2026 to cool overheating economy and rising inflation from strong demand.

flag Australia’s economy shows signs of overheating, with strong consumer spending and business investment surging in late 2025, catching the Reserve Bank off guard. flag The central bank raised interest rates in February 2026 to combat a resurgence in inflation driven by unexpected private demand. flag Fresh economic data will determine if the rate hike was sufficient or if further tightening is needed to cool growth and stabilize prices.

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