the economy

The BBC's Moscow correspondent Steve Rosenberg reports that Russia is facing growing economic problems, yet the war in Ukraine continues with no sign of a slowdown. The analysis highlights the strain of sanctions, inflation and wartime spending on ordinary Russians, while the Kremlin presses on with its military campaign. Observers are asking how long the economy can sustain the conflict.

The Reserve Bank of Australia has raised its cash rate to its highest level in 15 years, extending its campaign against persistent inflation. Borrowers face higher mortgage repayments as lending costs climb to a level not seen in over a decade. The decision keeps Australia in line with other major economies still tightening monetary policy, and economists are watching whether further increases will follow in coming months.

The US Federal Reserve has kept interest rates unchanged while new figures show inflation climbing to its highest level in three years. The combination leaves policymakers in a difficult position: cutting rates could push prices up further, while raising them risks slowing the economy. Analysts are watching closely for signals on when the central bank might move next.

Germany is placing military rearmament at the centre of its economic strategy, with defence spending framed as a new engine for industrial growth. Observers are debating whether this pivot can revive Europe's largest economy while meeting NATO pressure and security concerns tied to the war in Ukraine.

Chinese authorities have signalled fresh economic stimulus measures aimed at countering a worsening slowdown in the country's economy, according to Bloomberg. The announcement points to growing concern in Beijing over weak growth momentum, with the property sector among the key pressure points. Markets and analysts are watching for details on the scale and timing of any support package.

Russia plans to increase its 2027 military spending by 27%, according to budget documents reviewed by Reuters. The figures point to a continued shift of Russian state finances toward defense despite talk of possible peace negotiations over Ukraine, and the report is drawing attention among analysts tracking Moscow's war economy and long-term military commitments.

Germany has for the first time formally committed to phasing out fossil fuels, setting a target date of 2045. The pledge marks a significant step in the country's climate policy, aligning its energy transition goals with an explicit exit from coal, oil and gas. Reaction has focused on how Europe's largest economy will deliver the shift while keeping industry competitive and energy supply secure.

The Reserve Bank of Australia has raised interest rates, according to reports circulating widely on social media. The decision means higher borrowing costs for Australian households and businesses, with mortgage holders among those most affected. Commenters are debating what the increase signals about inflation and the bank's outlook for the economy.

Ukrainian President Volodymyr Zelenskyy says Ukraine will make this a tough winter for Russia, warning that pressure on Moscow is mounting. The statement signals Kyiv intends to keep targeting Russian energy and military infrastructure through the cold months, aiming to strain Russia's economy and war effort while sustaining Western support for Ukraine.

President Donald Trump is preparing for a summit with Chinese leader Xi Jinping, and attention is focused on what it could mean for trade and business. Analysts flag three key issues for companies: tariffs and market access, technology and export controls, and whether the meeting produces any concrete agreements or just rhetoric between the world's two largest economies.

Australia's central bank has lifted its key interest rate to the highest level in 15 years in an effort to bring inflation under control. The move means higher borrowing costs for households and businesses, and it signals that policymakers remain determined to curb price growth despite the pressure on mortgage holders and the wider economy.

Bloomberg reports that Chinese officials are studying new policies aimed at boosting the country's economy and stabilizing the struggling housing market. The move signals renewed policy attention to the property sector, which has weighed on growth amid weak home sales and developer debt problems. Markets are watching for concrete measures such as financing support or demand-side incentives.

Russia is raising $178 billion for defense, its largest military budget since the full-scale invasion of Ukraine in 2022. The figure signals a continued prioritization of war spending over other areas of the economy. Observers say the allocation underlines Moscow's commitment to sustaining its military campaign, and the scale of the budget is drawing attention to how long Russia can maintain such expenditure.

The United States and China have reached a trade deal to lower tariffs on roughly $30 billion worth of "non-sensitive goods", following a meeting between President Trump and President Xi this week. The agreement is expected to reduce prices on a range of consumer products, including small appliances, toys and holiday items, and is drawing wide attention as a step toward easing trade tensions between the two economies.

The Trump administration has sharply scaled back federal fuel economy requirements for new cars, loosening standards that had pushed automakers toward greater efficiency and lower emissions. The rollback of the Corporate Average Fuel Economy rules means new vehicles can consume more gasoline than previously mandated, a move likely to draw opposition from environmental groups and possible legal challenges, while offering relief to automakers facing compliance costs.

Reserve Bank of Australia Governor Michele Bullock has declared that the era of low interest rates is gone, warning Australians not to expect a return to the cheap borrowing conditions of recent years. Her remarks signal the central bank expects rates to stay higher for longer, drawing wide attention from homeowners and borrowers weighing the impact on mortgages and the wider economy.

Bank of England Deputy Governor Dave Ramsden said there would be a case for raising the key interest rate if inflationary pressures build in the UK economy. His comments signal that policymakers remain alert to upside risks to inflation even as rates stand at elevated levels, and come as investors and businesses watch closely for hints on the timing of the Bank's next move.

The Trump administration is moving to roll back federal fuel economy standards, a policy change with direct consequences for American drivers. Weaker standards could mean cheaper vehicles upfront but higher gasoline consumption and costs at the pump over time, while also affecting automakers' production plans and US emissions goals. Coverage, including from PBS, is focused on explaining what the change means practically for consumers and the wider auto industry.

Russia is planning to spend $202.58 billion on its military in 2027, an increase of roughly 27%, with $591 billion earmarked for defence over the next three years. The figures come alongside news that Russia's budget deficit has risen to 3.2% of GDP, double the 1.6% projected in official estimates, prompting discussion about how long the country can sustain war-driven spending.

The Reserve Bank of Australia has raised interest rates, with the effects reaching well beyond mortgage repayments. An analysis by Hanan Dervisevic explains how the decision flows through to savings returns, credit cards, personal loans and business borrowing costs. It underlines how one central bank move reshapes household budgets and spending across the whole economy.

The Trump administration has moved to sharply scale back US fuel economy standards, easing requirements that automakers improve the efficiency of cars and light trucks. The rollback, reported by The New York Times, is likely to be welcomed by carmakers seeking lower compliance costs but criticised by environmental groups who say it will increase emissions and fuel consumption.

A new NBC News poll shows President Donald Trump's approval rating falling to 41% among registered voters, a second-term low, with 55% disapproving. More voters are also criticizing his handling of the economy, a shift that matters as the closely watched midterm elections approach and both parties gauge voter sentiment heading into the campaign season.

Asian currencies are consolidating in quiet trading, but market watchers warn the gains could be capped by rising oil prices. Higher oil typically pressures Asian currencies because many regional economies are net energy importers, raising import bills and widening trade deficits. Traders are weighing the currency stability against the risk that continued energy cost increases could renew downward pressure on regional exchange rates.