PolicyEconomyInterest ratesOpinionThe massive build-out has contributed to a big upgrade in the central bank’s outlook for business investment, despite weak confidence in the private sector.John KehoeEconomics editorMichele Bullock says the artificial intelligence boom is now a bigger influence on the Reserve Bank of Australia’s monetary policy thinking than the housing market downturn.Borrowers escaped a rise in borrowing costs on Tuesday, but domestic inflation pressures are keeping the RBA governor’s interest rate trigger twitchy.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Latest In EconomyFetching latest articlesMost Viewed In Policy
Data centre boom keeps up pressure on RBA interest rates
The massive build-out has contributed to a big upgrade in the central bank’s outlook for business investment, despite weak confidence in the private sector.
TL;DRAI
RBA governor Michele Bullock flags AI data centre build-out as now overshadowing housing in interest rate policy. For tech leaders: sustained capex spending is validated at macro level, but rising rates lock in higher infrastructure costs—budget accordingly for 2026-27.
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