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Opinion

Millie Muroi Economics Writer October 24, 2025 — 12.05am

Three years ago, the jobs market was roaring, and the only thing the Reserve Bank’s economists really lost sleep over was inflation, the surge in prices leaving Australians angry and their wallets drained.

Unemployment, which was hovering around a record low of 3.5 per cent at the time, was far from the bank’s (and most people’s) worries.

By cranking up interest rates – and leaving them there for a while – the Reserve Bank was able to shrink the country’s inflation problem. Sure, home loan borrowers felt the pinch (which probably started to feel more like a full-body press when interest rates peaked at 4.35 and stayed there for a year), but at least it put a lid on inflation by forcing pe

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