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Australian Capex Powered by Renewables, Backing RBA Stance

Bloomberg Markets
Thursday, February 26, 2026 at 2:33 AM
~4 min read
BankingMonetary PolicyEnergy

Original Report

Australian business investment rose more than expected in the final three months of last year, buoyed by a surge in renewable energy projects and suggesting the economy was on a solid footing before...

Australian business investment rose more than expected in the final three months of last year, buoyed by a surge in renewable energy projects and suggesting the economy was on a solid footing before the Reserve Bank raised interest rates this month.

Glass House Analysis

This development in the banking sector reflects broader tensions between regulatory pressure and financial industry practices. Interest rate policy directly affects household budgets—higher rates mean more expensive mortgages, car loans, and credit card debt, squeezing middle-class families while benefiting savers and banks. The banking system serves as the circulatory system of the economy; any disruption ripples through to small businesses, homebuyers, and everyday consumers who depend on credit access.

Energy prices affect virtually every aspect of daily life—from commuting costs to heating bills to the price of groceries (which must be transported). For working families, energy represents one of the most volatile and impactful line items in their budgets. Energy policy decisions ripple through the economy, affecting everything from manufacturing competitiveness to household financial stress.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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