Albanese looks for reset on world stage as ‘spot fires burn’ domestically and likely interest rate hike looms

31 October 2026 at 05:24

The prime minister will speak with King Charles and others at the Commonwealth heads of government meeting in Antigua and Barbuda

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As “summit season” begins, reaffirming ties with fellow leaders on the world stage could be a circuit breaker for Anthony Albanese amid domestic and economic woes, analysts have said.

But a likely interest rate hike, triggered by higher-than-expected inflation, while the prime minister is overseas will make his job – and the treasurer’s – even harder.

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Inflation heats up again, days before midterm elections

PBS News Hour - The Latest

By: Christopher Rugaber · Associated Press

29 October 2026 at 19:24

Rising gas prices drove much of the inflation increase as renewed violence in the Middle East has kept oil prices above $100 a barrel, up from below $70 before the Iran war. But prices also rose outside of fuel costs.

Albanese concedes savings needed as he faces internal Labor pressure on cost-of-living crisis

World news | The Guardian

By: Tom McIlroy Political editor

29 October 2026 at 10:31

Prime minister vows not to slash health and education funding amid political problem over handling of economy

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Anthony Albanese has ruled out major cuts to health, education and essential services in December’s mid-year budget update, but conceded savings are required as Labor struggles to curb accelerating inflation.

Amid growing pressure from within Labor’s own ranks, as well as from the opposition and business, Albanese said the Coalition was hypocritical in not supporting existing savings proposals, including the government’s plan to reduce the private health insurance rebate for people over 65.

‘A pretty grim picture’: outlook for UK living standards slashed despite Healey’s budget

World news | The Guardian

By: Richard Partington Senior economics correspondent

28 October 2026 at 18:40

OBR cautions about Middle East war dragging down growth and triggering a fresh cost of living crisis

British households face a “pretty grim picture” for living standards as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, the government’s independent forecaster has said.

In a report as John Healey announced his first budget, the Office for Budget Responsibility (OBR) issued a sharp downgrade for growth in 2027, household disposable incomes and the public finances despite the measures taken by the chancellor.

WATCH: Warsh holds briefing after Fed leaves key interest rate unchanged

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By: Christopher Rugaber · Associated Press

28 October 2026 at 17:14

The Federal Reserve kept its key rate unchanged Wednesday at about 3.9% despite stubbornly high inflation, while providing little hint about the central bank's next moves.

Fed holds interest rates steady in last decision before midterms

World news | The Guardian

By: Gaya Gupta

28 October 2026 at 22:26

Fed chair Kevin Warsh said politics played no role in pause of interest rate hikes, despite inflation remaining above 3%

The US Federal Reserve left interest rates unchanged on Wednesday during its last board meeting before the midterm elections, keeping rates at one of the highest pre-election levels seen in over 20 years.

Two out of 12 board members voted against the pause, preferring to raise rates by a quarter point this meeting, the Fed board said in a statement.

5 things to watch for in this week's Federal Reserve meeting

PBS News Hour - The Latest

By: Chris Rugaber · Associated Press

27 October 2026 at 20:45

The Fed's Oct. 27-28 meeting will be the fourth of Chairman Kevin Warsh's tenure, which has been marked by questions regarding his independence from President Donald Trump, who appointed him earlier this year.