iPartners inFocus – All change please as the RBA shifts tack

They say a week is a long time in politics and plenty of current Australian politicians would agree given recent gyrations. In his latest inFocus piece, Michael Blythe argues that a couple of months is increasingly a long time in economics too and investors need to be alert.

With the geopolitical backdrop changing on an almost daily basis, policymakers are navigating a tricky balancing act between containing inflation, supporting growth and managing financial stability. Volatility is likely to continue in 2026 as ongoing conflicts, strategic rivalries, bloc-based trade and tech-driven competition reshape international alliances and test global stability.

Key discussion points:

• The RBA has changed tack and commenced lifting interest rates.
• Policymakers are trying to contain inflation, support growth and manage financial stability.
• With all the clarity of hindsight, the RBA misjudged the demand-supply balance in H2 2025.
• Fiscal policy has a role to play – but early indications for the May Budget are not encouraging.
• The inflation outlook may not be as dire as thought – but pencil in another rate rise for May 2026.
• This edition of inFocus looks at some implications for the economy, markets and Alternatives.

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iPartners inFocus February 2026 – All change please – the RBA shifts tack