The ‘nowhere’ economy: Australia now faces a lost decade
by John Kehoe · Australian Financial ReviewJohn KehoeEconomics editor
Oct 2, 2026 – 3.39pm
Australia’s economic troubles deepened this week when the Reserve Bank of Australia raised interest rates for the fourth time this year, new inflation figures showed entrenched price pressures, and the government’s budget deficit got worse.
Australians will need to get used to this extended post-pandemic economic hangover as the new normal, which threatens to stretch from the current count of four years to become a lost decade for living standards.
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- Australian economy
- Analysis
- Jim Chalmers
- Anthony Albanese
- AFR Weekend
- Perspective
- RBA
- ALP
- Michele Bullock
- Philip Lowe
- Pauline Hanson
- Interest rates
- Inflation
- Federal budget
John KehoeEconomics editorJohn Kehoe is The Australian Financial Review’s economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the AFR in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
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