Economic News

S&P Global Ratings lowered Queensland’s long-term issuer credit rating from AA+ to AA on 11 September 2026, marking the state’s first downgrade since 2009. The ratings agency maintained a stable outlook on the revised rating.

Recent economic indicators show a mixed picture. Economic activity continues to expand, but momentum has moderated. Inflation has eased from earlier highs but remains above the Reserve Bank of Australia’s (RBA) target range, while households and businesses continue to face higher borrowing costs.

Net overseas migration remains one of the biggest contributors to Australia’s population growth, but declining arrivals and higher departures have reduced the pace of migration growth. This shift has created a policy debate around the impact on housing affordability, infrastructureDemandand economic growth.

After maintaining the cash rate at 4.35% in recent meetings, the RBA’s 28–29 September board meeting will take place at a time when financial markets are reassessing the outlook for interest rates.

The increase in bond yields has occurred alongside renewed concerns aboutInflationpersistence and expectations thatMonetary Policymay remain restrictive for longer. Higher yields can affectMortgagepricing, corporate financing conditions andInvestmentdecisions across the economy.

Brent crude oil prices have moved above USD 100 per barrel, increasing uncertainty for households, businesses and policymakers. Higher energy prices can influence inflation through fuel costs, transport expenses and broaderBusinessinput costs.

The S&P/ASX 200 (ASX:XJO) closed at 8,741.20 points, down 0.89% or 78.20 points, as market sentiment weakened amid increased uncertainty across global financial markets.