Australia’s central bank has increased the cash rate target by 25 basis points to 3.85 per cent at its latest policy meeting, responding to signs that inflationary pressures strengthened materially in the latter half of 2025.

While inflation has eased significantly from its 2022 peak, the Board noted that recent price pressures partly reflect stronger demand and capacity constraints. Private demand growth has exceeded expectations, Reserve Bank of Australia (RBA) said in a release.

Reserve Bank of Australia has raised the cash rate by 25 basis points to 3.85 per cent, citing a renewed pick-up in inflation during the second half of 2025.
The Board said stronger-than-expected private demand, easing financial conditions and persistent labour market tightness are adding to capacity pressures, keeping inflation above target for longer.
The decision was unanimous.

Financial conditions had eased through 2025, credit remained readily available, and earlier rate cuts were yet to fully feed through to demand, prices and wages. Labour market conditions remain tight, with unemployment lower than expected and unit labour costs still elevated despite some moderation in wage growth.

Looking ahead, the Board said that stronger domestic demand alongside limited supply capacity could further intensify inflation pressures. Global uncertainties persist, but growth among Australia’s major trading partners has so far surprised on the upside. The decision to raise rates was unanimous, with policymakers reaffirming their commitment to price stability and full employment.

Fibre2Fashion News Desk (HU)

German sportswear company Adidas has reported strong preliminary results for the full year 2025, with currency-neutral revenues for the Adidas brand rising 13 per cent year-over-year (YoY) for the second consecutive year, driven by double-digit growth across all markets and channels. Including Yeezy sales in the prior year, currency-neutral revenues increased 10 per cent YoY.

In euro terms, revenues reached a record €24.81 billion (~$29.53 billion) in 2025, up from €23.68 billion in 2024, despite a negative currency translation impact exceeding €1 billion. The gross margin improved by 0.8 percentage points to 51.6 per cent, even amid unfavourable currency movements and higher tariffs. Full-year operating profit surged by more than €700 million to €2,056 million, while operating margin expanded sharply to 8.3 per cent from 5.6 per cent a year earlier.

Adidas has reported strong preliminary results for 2025, with currency-neutral revenues rising 13 per cent and reaching a record €24.81 billion (~$29.53 billion), supported by double-digit growth across markets.
Margins and operating profit improved sharply, while Q4 performance remained robust.
Backed by strong cash flows, the company approved a €1 billion (~$1.19 billion) share buyback.

Meanwhile, in the fourth quarter (Q4) of 2025, currency-neutral revenues for the Adidas brand increased 11 per cent, or 10 per cent including prior-year Yeezy sales. Quarterly revenues rose to €6,076 million from €5,965 million in Q4 2024. Gross margin improved by 1 percentage point to 50.8 per cent, while operating profit more than doubled to €164 million, compared with €57 million in the same quarter last year, Adidas said in a press release.

“I am again very proud what our people have achieved. Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started,” said Bjorn Gulden, CEO at Adidas.

“The double-digit growth in all markets and all channels is of course very pleasing, but even more important is that this is quality growth. Our markets have been very good at managing that the right product in the right amount has been sold in their markets and that we have managed to keep full-price sell-throughs high and discounts under control,” added Gulden.

Buoyed by strong brand momentum, solid fundamentals, a healthy balance sheet and robust cash flow generation, the Adidas Executive Board has approved a share buyback programme. Starting in early February, the company plans to repurchase shares worth up to €1 billion (~$1.19 billion) in 2026, financed through anticipated cash flow generation, with the intention of cancelling the repurchased shares.

Looking ahead, Adidas reaffirmed its confidence in continued growth across sport, lifestyle, comfort and fashion segments, as well as further market share gains globally.

Fibre2Fashion News Desk (SG)