If Australians don’t have faith in the Reserve Bank’s promise of a “narrow path” to avoid recession, they could end up being the cause of one, the central bank’s governor Philip Lowe has warned, according to a report from AAP.
If people start worrying that the path back from 5% inflation to a more normal level is unrealistic, it might push the economy into a downward spiral, he says.
Australians are copping increasing costs of living as inflationary pressures rise, leading to higher prices at the supermarket and made worse by high fuel and gas prices.
The national minimum wage also recently rose, a move that’s hoped to ease the financial burden on households. Lowe told a central bankers meeting in Zurich on Friday:
There is a path to have inflation come down without the economy having too much pain, but it’s a narrow path.
But if people start to worry that we can’t show that credible path back … to two to three per cent inflation … then I think that shift in psychology could be quite persistent. And we know where that ends – it ends in persistent inflation and then you’ve got to have much higher interest rates and an economic downturn to get inflation back down.
There was quite a lot I didn’t know about vaping before I read this piece from Bianca Nogrady:
There have been 21 Covid deaths in NSW. 1,453 people have been hospitalised, and 45 are in intensive care:
US president Joe Biden is calling on Americans to vote for officials who will restore abortion rights. This is how he described the overturning of Roe v Wade earlier:
So extreme that women could be punished for protecting their health.
So extreme that women and girls who are forced to bear their rapist’s child – of the child of consequence.
It’s a – it just – it just stuns me.
So extreme that doctors will be criminalised for fulfilling their duty to care.
Imagine having a young woman having to carry the child of incest – as a consequence of incest. No option.
Too often the case that poor women are going to be hit the hardest. It’s cruel.
Australia has lifesaving antivirals sitting on shelves, but there’s some dithering over getting them out there. Caitlin Cassidy and Josh Butler have talked to the experts:
Michael McGowan has tracked the twists and turns that handed former NSW deputy premier John Barilaro that sweet gig:
“We’ve been compromised.” Please enjoy this read from Nino Bucci on how camouflage failed to make these covert cops invisible:
This is cheating slightly because it’s not today’s news, but I did promise something chirpy. So in case you missed it, here is this week in wildlife pictures:
Unsurprisingly, there are certain Australian elements that will find succour in the US decision:
Katharine Murphy: voters have sent Dutton a clear message; he would be silly to miss the cue
If you’re just plugging in, Katharine Murphy will help you fire up. She’s taken a whirlwind trip through the shenanigans in energy policy, and cocked a questioning eyebrow at opposition leader Peter Dutton’s plans:
Welcome to your Saturday – Australia’s waking up to the news that the US supreme court has overturned the constitutional right to abortion.
Many in the US are reeling, and protesting, and trying to work out what will happen in each state. President Joe Biden declared the move “so extreme”. Tory Shepherd here at the wheel, and I’ll bring you the local reaction throughout the day.
We’re also talking about that plum New York posting for former NSW deputy premier John Barilaro, the crossbench’s anger at prime minister Anthony Albanese’s decision on staffing, and the ongoing energy crisis.
And I’m going to find some chirpier news, too, to kick off your weekend. I promise. Let’s go.