IMF says persistent inflation means ‘higher-for-even-longer’ interest rates
Stubbornly high inflation in advanced economies threatens “higher-for-even-longer interest rates”, the International Monetary Fund warns, citing lingering services-price pressures and escalating trade tensions.
As AAP reports, Australia’s economic growth outlook has also been slightly trimmed by the IMF to 1.4% for 2024 from the 1.5% forecast in April. Gross domestic product is then expected to expand 2% next year, unchanged from previous forecasts.
The IMF’s latest economic assessment lands as economists warn persistent price pressures threaten the Reserve Bank of Australia’s inflation fight, which could lead to interest rates staying higher longer.
Much hinges on June quarter inflation data out later in the month, with a strong outcome potentially putting another hike on the table at the August cash rate meeting.
Globally, the IMF’s growth projections were unchanged and inflation had slowed enough to be broadly on track for a soft landing. Yet deteriorating public finances as well as slowing disinflation progress, particularly due to persistent services price pressures, were highlighted as downside risks to the outlook.
Possible escalation of trade tensions was also identified as potential source of bumpiness along the disinflation path, threatening higher costs for imported goods along the supply chain.
Key events
Andrew Messenger
CS Energy apologises over power plant explosion
The chair of CS Energy, Adam Aspinall, has apologised for the “catastrophic” engineering failure which wrecked a generator at the Callide coal-fired power station.
The government owned enterprise released two reports today – one into the 2021 failure, and another into a separate engineering failure, which caused the partial collapse of a cooling tower in 2022.
Aspinall said:
As the current chair of CS Energy I apologise to our employees, the government and the people of Queensland for CS Energy not having maintained the world class performance, which they have rightly come to expect from their government owned assets.
Aspinall and CEO Darren Busine did not take questions from the media after reading a prepared statement to cameras today, on the grounds that there is legal action underway.
While Busine repeated that “a lack of maintenance did not cause the incident,” he conceded that the report found that “more effective process safety practices could have assisted serious energy in identifying and managing the risks” involved in the installation of a new battery charger.
Aspinall said the operator had provided “ambiguous” advice to energy minister Mick de Brenni. The C4 generator wrecked in 2021 has yet to return to service.
Australian federal police commissioner Reece Kershaw recognised and paid tribute to the 500-plus first responders and officers who helped investigate and respond to the MH17 downing.
Speaking at the memorial service in Canberra, Kershaw said that when tragedy occurred, “we hold on to memories to sustain us and turn to those whose job it is to pursue justice”.
For those on the ground, strength was drawn from the blue patch on their shoulders, the insignia of the AFP. Our mission was clear: do everything possible to return loved ones, find the truth, seek justice and hold those responsible to account…
I pay tribute to our shared mission with international partners, so critical to this case. I acknowledge those who still pursue all avenues to hold Russia to account.
Julie Bishop concluded her speech with the following remarks:
It is shocking to think that on that day, ten years ago, Australia found itself at the fulcrum of the Russian-Ukraine conflict that continues to this day [with] such shocking consequences.
So today, we remember those we lost and our thoughts are with those who loved and were loved by them.
Julie Bishop reflects on time as foreign minister when MH17 went down
Julie Bishop, who was foreign minister at the time of the MH17 downing, is now speaking at the memorial service for victims.
Bishop said she would “never forget” the phone call she received early on the Friday morning advising her of an “incomprehensible situation that was unfolding”.
I’ll never forget the early phone calls with the family representatives, whose grief was inconsolable. Our government’s solemn commitment that we would do everything possible to bring them home …
Without any diplomatic presence in Ukraine, I’ll never forget how we deployed over 500 Australian personnel to a temporary embassy that became a nerve centre for our operations, which became an increasingly complex and dangerous mission.
Having to convince president [Petro] Poroshenko and various Ukrainian political parties that we had to recall the Ukrainian parliament that was on summer break in order to pass a resolution to enable us to enter the crash site, and to their everlasting credit, over 500 members returned to parliament…
Confronting president [Vladimir] Putin and demanding that Russia take some accountability for this, and that they’d cooperate with the investigation rather than obfuscation and evasion.
Bishop also recognised the “painstaking” efforts of the joint investigation team. She is wearing an order of merit awarded to her by the Dutch government, which she wears “in tribute to those who lost their lives”.
Foreign minister Penny Wong was next to address the memorial service to the MH17 victims in Canberra. She told the family members and loved ones in the room:
So I say to you today – you have lost so much, but you are not alone in your loss. We are with you, and your grief steels us in the fight for justice, as it has steeled for Australia that day. As it steeled our diplomats, led by Julie Bishop, to achieve what first seemed impossible – a unanimous UN security council resolution condemning the attack, [which] gave international backing for an independent investigation [that] carried without Russian veto.
And your grief has steeled the hundreds of Australian federal police, defence force and Australian Transport Safety Bureau personnel, whose thorough and painstaking work supported that independent investigation through the MH17 independent joint investigation team. And together these efforts, on behalf of those we lost, on your loss, and on behalf of the country, have seen convictions laid against perpetrators.
CFMEU furore sparks Indigenous commission investigation
Victoria’s truth-telling commission will inquire into allegations Indigenous workers have not been given a fair go on government construction worksites following the CFMEU scandal, AAP reports.
The Yoorrook Justice Commission said it was concerned by reports alleging government failures to ensure fairness in the awarding and administration of large contracts in the construction sector.
It came after premier Jacinta Allan acknowledged it took too long to reply to an Indigenous labour-hire firm’s 2022 letter detailing allegations of officials from the Construction, Forestry and Maritime Employees Union (CFMEU) threatening violence and banning non-aligned firms from state and federally funded projects.
Yoorrook has the powers of a royal commission, meaning it can call witnesses, compel the production of documents and make findings and recommendations. Commissioner and deputy chair Travis Lovett said:
Increased participation in the Victorian economy is essential for Victorian First Peoples, if true self-determination is to be achieved.
We encourage affected First Nations businesses and individuals to continue to come forward, including on a confidential basis, to contribute to our ongoing inquiries and inform necessary change in the sector.
Governor general Sam Mostyn has been speaking at the memorial service for the MH17 victims. She said:
I pay tribute to the Australian police, military, diplomatic and consular personnel who worked so hard then and in the months and years afterwards to support grieving families all over Australia. Your actions testify to the healing power of courage, care and compassion…
To the families and loved ones of victims, here in this people’s place, your fellow Australians remember and honour the precious ones lost to you now 10 years ago. Those men, women and children are part of you. Each one was cherished for the indelible qualities that defined their efforts … [That] they died so far away from home is a profound grief and without them here all that is left is to find ways to reflect and remember.
Peter Hannam
Ted O’Brien misses session at clean energy summit after apparent traffic jam
Whether we get any fireworks with federal opposition energy spokesperson Ted O’Brien trying to convince a clean energy summit of the pros of nuclear reactors remains unclear.
O’Brien was apparently caught in a traffic jam and missed his 9.50am on the way to the Sydney event at Darling Harbour.
An event speaker wryly speculated whether the delay might have been an anti-nuclear protest.
A trio of state energy ministers stepped in to fill the void, with their session brought forward.
MH17: memorial service for 10th anniversary of downing begins
A memorial service is under way in Canberra for the victims of Malaysian Airlines flight MH17, on the 10-year anniversary of its downing.
Former foreign minister Julie Bishop and Australian federal police commissioner Reece Kershaw are expected to deliver speeches.
Foreign minister Penny Wong, former prime minister Tony Abbott and governor general Sam Mostyn can be seen sitting in the front row as the service begins.
NSW opposition calls for royal commission into CFMEU
Tamsin Rose
The New South Wales opposition has called for a royal commission into the operations of the CFMEU.
Acting opposition leader, Damien Tudehope, said the premier’s comments had been an “insult to every honest worker in this state” and accused Labor of being “in bed” with the embattled union. Tudehope said:
Now, in the wake of these damning revelations, the premier pretends to take action. This is nothing more than political theatre. The people of NSW deserve a leader who genuinely stands against corruption.
He said only a royal commission could properly investigate the claims.
Earlier this morning, premier Chris Minns said he had called on NSW Labor to suspend the CFMEU construction arm.
Minns has been approached for comment.
Man charged after allegedly fleeing police and punching constable in face
A man will face court after allegedly fleeing from police after a vehicle stop and punching an officer in the face multiple times.
Police said the 25-year-old man was stopped for a random breath test in Broken Hill about 2am on Sunday. The occupant exited the car and police allegedly found drug paraphernalia.
As officers attempted to address the driver, he allegedly fled on foot. A pursuit began and the man allegedly stopped and punched a constable multiple times in the face before he kept running, police said.
The man was stopped a short time later and allegedly continued to resist. An officer then deployed his taser and the man was arrested.
Police allegedly located methylamphetamine and cash during a subsequent search of the man. Police said three constables were injured during his arrest.
The man was taken to Broken Hill Hospital for assessment and treatment before being released into police custody and charged with a string of offences, including driving without a licence, escaping police custody and three counts of assaulting an officer in the execution of duty.
The South Australian man was refused bail and appeared at Dubbo local court on Sunday, where he was formally refused bail to reappear at Broken Hill local court on 26 July.
Olympic champion slalom canoeist Jess Fox has been chosen as an official torchbearer for the upcoming Paris Olympics torch relay.