Japan’s central bank has raised its main interest rate to a fresh 31-year high as it continues to move away from decades of ultra-low borrowing costs and as the country faces increasing economic pressures.

In a widely expected move on Friday, the Bank of Japan (BOJ) increased the rate from 1% to 1.25% – a level not seen since 1995.

It comes as major central banks around the world are hiking rates as higher energy prices caused by the Iran war are helping to push up inflation.

On Wednesday, the US Federal Reserve raised its benchmark interest rate for the first time in over three years, while the European Central Bank also increased its borrowing costs earlier this month.

The BOJ has been raising the rate since 2024, when it stood at minus 0.1%. It has now hiked rates six times in the last two and a half years.

Since then the bank has been steadily putting up the rate as it tries to reach a level similar to other major economies.

When a central bank raises rates, the country’s currency usually becomes stronger as it makes the it more attractive to traders.

Japan is facing several economic challenges including a persistently weak yen, rising prices and a shrinking workforce.

Official figures published on Friday ahead of the BOJ announcement showed that inflation eased slightly last month.

Core inflation fell to 1.7% in August from 1.8% the previous month but remains close to the bank’s 2% target level.

While Japan’s inflation rate is not high by international standards, rising prices are a relatively new development in the economy.

Until recently the country had experienced very low inflation or deflation – falling prices – for around three decades.

Global oil and gas prices have risen this year as the Iran war caused major disruptions to shipments through the key Strait of Hormuz shipping route.

Japan is particularly vulnerable to those supply interruptions as it is heavily reliant on energy from the Middle East.

The country’s currency has also been under pressure in recent months.

In August, Tokyo and Washington confirmed that they had jointly intervened to halt a slide in the yen after it fell to a fresh 40-year low.

The coordinated intervention was the first since 2011, when both countries took action together to weaken the yen after the devastating earthquake and tsunami that hit eastern Japan.

Both Japan’s Ministry of Finance and US Treasury Secretary Scott Bessent said at the time that they would not hesitate to conduct more joint interventions in the future.

Bessent has also been ramping up pressure on the BOJ to raise interest rates to help support the yen, calling on its Governor Kazuo Ueda to “do the right thing”.

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ASX-listed contractor Macmahon Holdings has taken another big step to further diversify and strengthen its mining value chain.

Michael Finnegan-led Macmahon, which has a market cap of $2.13 billion, told the market on Friday it had filed documents to acquire St George’s Terrace-based Aspect Engineering Solutions – in a deal, due to be finalised by the end of the calendar year, which could range between $75-90 million.

The market responded positively early in trade on Friday, with Macmahon shares up 6 per cent to $1.05 as of 10.29am AWST. 

Aside from an initial cash consideration package of $30 million upon the deal being completed, Macmahon will also provide a $6 million annual retention payment over five years.

Additionally, earn-out patments between $15 and 30 million are also on the table, in respect to base case or outperformance-based metrics being met over a three to five year period.

Macmahon said it would fund its acquisition through its existing cash reserves, which as of June 30, was $309.6 million, although it has an option of utilising scrip instead of cash in terms of payment for future retention and earn-out payments.

Aspect, which has 295 direct employees and 50 clients across the infrastructure, energy and resources sectors – generated $75 million in revenue during FY26 and has an unweighted work pipeline of approximately $225.8 million.

“Macmahon intends to operate Aspect as a standalone business, retaining its brand, leadership and client-focused operating model while progressively introducing Macmahon governance, systems, project controls and workforce support,” the company said. 

Mr Finnegan said the acquisition was critical, as the contractor eyes adding additional mineral-based processing services into its operation.

“The acquisition is expected to be accretive for Macmahon shareholders from inception and has been structured to align consideration with retention and future earnings performance,” he said.

“Importantly, the investment case is attractive on a standalone basis. 

“Aspect also provides a platform to accelerate the development of our minerals processing service offering, which is a strategic priority for Macmahon. 

“We look forward to working with the Aspect team to realise the opportunities created by bringing our complementary capabilities together.”

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TAT’s Nihao Month 2026 campaign, from 15 September, targets Chinese travellers via promotions, cultural events, and KOL trips to boost bookings, spending, and sustain demand through festive periods.

Promoting Chinese Tourism Through Nihao Month 2026

The Tourism Authority of Thailand (TAT) has launched an extensive campaign, Nihao Month 2026, to attract Chinese travelers. Scheduled to commence on 15 September, the initiative includes various promotional activities and incentives. Through strategic partnerships with platforms like Meituan, the campaign aims to entice Chinese tourists with special promotions and exclusive passport privileges. This multifaceted approach is designed to enhance travel bookings, increase visitor spending, and strengthen cultural connections between China and Thailand.

Celebrating Culture and Collaboration

As part of this initiative, TAT will host a Mid-Autumn Festival celebration, a culturally significant event for Chinese visitors. This celebration not only offers tourists a taste of Thai hospitality but also fosters a deeper cultural exchange. Additionally, TAT plans to conduct KOL (Key Opinion Leader) familiarization trips, inviting influential figures to explore Thailand and share their experiences with their vast audiences. Such efforts aim to sustain interest and travel demand well beyond the immediate holiday period.

Sustaining Interest Beyond Golden Week

The Nihao Month campaign is strategically timed to coincide with Golden Week, a peak travel period in China, and extends its reach towards the Chinese New Year in early 2027. By leveraging these key travel windows, TAT hopes to establish lasting engagement with Chinese tourists. This targeted approach is designed not only to stimulate immediate revenue but also to nurture long-term tourism relationships, ensuring sustained growth in visitor numbers from China to Thailand.

Source : TAT expands Nihao Month 2026 to drive China travel and engagement

CANBERRA, Australia — Home Affairs Minister Tony Burke Warns Migration Overhaul Economic Risks facing the national economy will be impossible to isolate completely, cautioning that government policy mandates to curb net overseas migration will inevitably trigger cost trade-offs across essential labor-dependent industries, including agriculture and food production.

Speaking amid ongoing parliamentary debate surrounding federal immigration reforms, Home Affairs Minister Tony Burke declared that the federal government cannot quarantine specific economic sectors from the realities of lower net migration figures. The warning comes as regional agricultural bodies and fresh produce industry representatives raise alarms over proposed caps on Working Holiday Maker visa holders, warning that reduced seasonal labor availability will drive up harvesting expenditures and ultimately elevate retail grocery prices for Australian households. While emphasizing that the Labor administration remains fully committed to normalizing net overseas migration down from post-pandemic peaks to sustainable historic averages, Minister Burke stressed that achieving significant population reductions requires accepting broad-based labor adjustments across regional and metropolitan commercial networks.

Economic commentators note that balancing federal migration reduction targets against sector-specific labor demands represents a central policy friction point for the federal government.

Agricultural Sector Alarms Over Backpacker Caps and Food Inflation

The primary friction point surrounding federal migration targets involves potential restrictions imposed on seasonal harvest labor.

Peak agricultural industry associations, including National Farmers’ Federation representatives and regional horticulture groups, caution that tightening Working Holiday Maker visa allocations will sever a vital labor pipeline relied upon during peak harvesting months. Working holidaymakers historically provide essential seasonal labor across orchards, vineyards, and vegetable farms throughout regional Australia, performing physically demanding harvesting and packing roles that local labor markets routinely fail to fulfill. Industry groups warn that uncompensated labor shortages will force farmers to leave unharvested crops to rot in fields, creating immediate supply contractions across domestic fruit and vegetable supply chains while pushing retail food prices higher at major supermarket chains.

Addressing these warnings, federal ministers acknowledged industry concerns but reiterated that broad population policy goals cannot offer absolute exemptions to individual commercial sectors.

• Broad Sector Exposure: Federal ministers emphasize that achieving overall migration reductions requires labor adjustments across all domestic industries.
• Regional Agriculture Reliance: Working holidaymakers provide crucial seasonal labor for fruit picking, vegetable harvesting, and farm packing operations.
• Harvest Supply Risks: Unfilled farm labor vacancies threaten to cause crop spoilage and contract fresh produce market availability nationwide.
• Retail Price Transmission: Reduced harvest yields and elevated farm procurement costs risk spilling over into higher retail grocery inflation.

The policy standoff underscores how structural changes in temporary visa issuance directly impact foundational consumer supply chains.

Broader Migration Reform Context and Net Overseas Target Constraints

The debate over seasonal farm labor occurs within a broader overhaul of Australia’s national migration architecture.

Following record post-pandemic population inflows driven by returning international students, temporary workers, and working holidaymakers, the federal government launched a comprehensive Migration Strategy designed to halve net overseas migration. Key policy pillars include raising minimum English language requirements for international student visas, tightening genuine student test criteria, increasing temporary skilled worker income thresholds, and cracking down on visa hopping mechanisms. While federal policy measures have already slowed student visa grants and reduced overall visa processing volumes, ministers maintain that long-term population stabilization requires sustained policy discipline across all temporary visa sub-categories.

Federal officials maintain that reducing overall migration levels remains critical to relieving pressure on metropolitan housing markets and public infrastructure.

The structural reforms mark a decisive transition from emergency post-pandemic workforce recruitment toward managed population controls.

Regional Workforce Dynamics and Structural Labor Challenges

The policy debate highlights persistent structural challenges surrounding domestic labor mobility and regional employment preferences.

Regional business leaders argue that reducing temporary visa worker numbers without establishing viable domestic workforce substitutes threatens the economic vitality of rural communities. Despite federal incentives designed to encourage domestic job seekers to relocate for seasonal harvest work, local participation rates remain low due to geographic isolation, seasonal employment instability, and demanding physical working conditions. Consequently, regional agricultural operators remain heavily dependent on international visa holders to maintain output levels, making regional economies disproportionately vulnerable to shifting federal immigration settings.

Policy analysts emphasize that solving regional workforce shortages requires long-term structural investments alongside clear immigration settings.

The gap between urban population management goals and regional labor realities continues to complicate national policy formulation.

Political Implications and the Balancing Act for Economic Growth

Managing the economic trade-offs of lower migration presents significant policy challenges for federal lawmakers heading into national elections.

Opposition lawmakers argue that government policies have failed to provide adequate planning or clear labor protections for primary producers, while housing advocates urge authorities to enforce stricter caps to ease rental market stress in capital cities. The federal government faces the complex task of demonstrating decisive control over national border settings without triggering economic slowdowns or escalating cost-of-living pressures for consumers. As legislative reviews continue, ministers face ongoing pressure from regional MPs, industry lobbyists, and economic analysts to recalibrate temporary visa settings to prevent severe labor shortfalls.

The ongoing debate reinforces that migration policy remains deeply intertwined with national economic productivity and household living standards.

How parliament balances population targets against essential labor requirements will shape Australia’s economic trajectory over the coming decade.

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