Australia in February 2026: the most important developments in economy
In February 2026, Australia's economic news was shaped by interest rates, mining and the arrival of artificial intelligence in the workplace. On 3 February the Reserve Bank of Australia raised its rate by 0.25 percentage points, its first increase since November 2023, citing persistent inflation and signaling that more rises could follow. Major banks began adjusting their rates. Later in the month Governor Michele Bullock said she does not believe inflation is taking off again, and the Australian and New Zealand dollars rose as traders positioned for a global cycle of rate rises.
Mining was the most covered subject. BHP reported a surge in profit as copper demand overtook iron ore earnings, and the company relied on copper growth rather than large deals. Rio Tinto and Glencore called off their merger talks on 5 February, and Codelco and Rio Tinto signed an early agreement to weigh joint investments in exploration and development. Germany expanded its raw materials partnership with Australia. LG Energy Solution said it would sell its entire 7.5 percent stake in lithium miner Liontown as the battery materials sector faced weaker electric vehicle demand. Australian gas exporters sought new buyers in Asia and Europe as long-term Chinese demand weakened, and Shell was considering the sale of a 24 billion dollar stake in its Browse LNG project.
Companies also cut jobs while investing in AI. WiseTech said it would reduce its global workforce by 30 percent, about 2,000 jobs, Commonwealth Bank cut 300 positions while retraining staff, and a Telstra joint venture planned to remove more than 200 jobs. Other items included Australian beef exports being exempted from new US tariffs, a bid by a consortium of Japanese firms to build a high-speed rail line in Australia, and reports that the EU's trade push with Australia was meeting resistance from agricultural politics.
by WorldBrief & Maksim Micheliov | AI-generated summary
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