Politics Now A rate 'bump in the road' for Labor
Nov 4, 2025
Interest rates are at a standstill, prompting discussions about the Albanese Government's future. The struggle for first homebuyers is highlighted as house prices spike due to a new deposit scheme. Meanwhile, the pressure on Labor mounts with rising costs and the need for effective relief measures. As the Liberal Party faces internal turmoil, Sussan Ley's leadership is under scrutiny. The debate rages on between demand-side and supply-side policies, impacting long-term housing solutions.
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Higher-For-Longer Interest Reality
- The RBA held rates at 3.6% after hotter-than-expected inflation, extending higher-for-longer interest expectations.
- Tom Crowley says this is a "bump in the road," not a runaway inflation crisis, requiring patience into 2026–27.
Productivity Limits Economic Gains
- Persistent sluggish productivity limits economic capacity and keeps inflation sticky despite low unemployment.
- Tom Crowley argues productivity reforms are key to sustainable growth and better living standards.
Use Budgets To Tackle Pressure
- Prepare for fiscal adjustments: MAEFO and the May budget will be key moments for policy shifts.
- Governments should use those budgets to make tough decisions to manage economic pressure.