FEAR & GREED | Business News Hot growth triggers rate fears; ASX tumbles; overdose resistant drugs
Mar 4, 2026
David Holland, Managing Director of Talent Solutions at Employment Hero, an HR-tech unicorn focused on HR, payroll and global growth. He talks about scaling remote culture with 90-day rhythms and annual meetups. He explains hiring practices that lock in performance. He outlines product moves like digitising superannuation and using HR data to power AI features.
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Stronger Growth Raises Rate Risks
- Australia's GDP grew 2.6% annually in 2025, driven by government spending, data centre investment and strong consumer event spending.
- The pickup raises the odds the Reserve Bank may raise rates, though private investment lags and household spending slowed to 0.3% in Dec quarter.
Government Spending Is Material For Growth
- Public sector spending now accounts for nearly 28% of the economy and is a material driver of recent growth.
- That high fiscal contribution intensifies pressure on the Reserve Bank to consider tightening monetary policy.
Watch March Quarter Inflation Before Pricing Rates
- Expect the RBA to weigh March 17 action against forthcoming March-quarter inflation data and likely pause to assess new inflation prints.
- Investors should watch late-April inflation data as the key input for the next policy move.