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The Guardian - AU
The Guardian - AU
National
Jordyn Beazley

Afternoon Update: RBA governor suggests more share houses; inflation rises; and vapour blasts from a Saturn moon

Philip Lowe
The RBA’s Philip Lowe suggested the only way to lower housing costs was to reduce aggregate demand, such as through more shared dwellings. Photograph: Mike Bowers/The Guardian

Good afternoon. Inflation increased to 6.8% last month as energy prices jumped, but the easing of underlying price pressures has reduced the chance of another Reserve Bank rate rise in June.

The April rate is higher than the 6.4% pace economists had expected as well as the 6.3% reading for March. However, once volatile items were excluded, the underlying inflation rate, which the RBA watches most closely, eased to an annual clip of 6.5% in April from 6.9% in March.

Today’s inflation figure is the one of the last pieces of information the RBA will receive before it decides on interest rates next Tuesday.

David Bassanese, the chief economist at BetaShares, said the RBA need not “reach for its gun just yet – especially given other signs of a cooling economy, such as weaker building approvals and consumer spending”.

Top news

Scandal-hit accounting firm PwC will continue to audit the Reserve Bank. Photograph: Bianca De Marchi/AAP
Scandal-hit accounting firm PwC will continue to audit the Reserve Bank. Photograph: Bianca de Marchi/AAP
  • PwC to continue to audit RBA | Scandal-hit accounting firm PwC will continue to audit the Reserve Bank, including over possible underpayment of staff, but won’t get new contracts unless it can demonstrate “complete” transparency and accountability, said the RBA governor, Philip Lowe.

  • South Australia cracks down on protest | After a 14-hour debate, the South Australian government passed laws on disruptive protests, increasing the maximum fine to $50,000 along with potential jail time. SA Unions have accused the government of rushing through the bill, which was supported by both the Labor government and the opposition, and accused the government of failing to respond to most concerns.

South Australian government passed laws on disruptive protests. Photograph: Matt Turner/AAP
South Australian government passed laws on disruptive protests. Photograph: Matt Turner/AAP Photograph: Matt Turner/AAP
  • RBA governor suggests more share houses | The RBA governor, Philip Lowe, told Senate estimates today that the housing market, including rents, is one of the biggest drivers of CPI. He suggested the only way to see housing costs come down was to reduce aggregate demand, which meant more people sharing dwellings or staying with their parents for longer.

  • State of Origin too close to call | Tonight’s State of Origin series is set to be the most evenly poised in memory, with pundits saying it is too close to call. Follow the 2023 State of Origin series opener in Adelaide with Guardian Australia’s minute-by-minute live blog. Kick-off on Wednesday night is 8.05pm AEST.

Astronomers have spotted an enormous 9,600km plume of water vapour blasting out of Enceladus.
Astronomers have spotted an enormous 9,600km plume of water vapour blasting out of Enceladus. Photograph: dottedhippo/Getty Images/iStockphoto
  • Water vapour blasts from Saturn moon | Astronomers have spotted an enormous 9,600km plume of water vapour blasting out of Enceladus, a tiny moon of Saturn that is considered one of the most promising places to find life beyond Earth.

  • Sackler family shielded from opioid crisis | A federal appeals court has ruled the Sackler family – the billionaires behind Purdue Pharma, the maker of the powerful and highly addictive prescription painkiller OxyContin – can be protected from lawsuits related to their company’s role in the opioids crisis.

  • North Korea spy satellite fails | North Korea’s first spy satellite launch has ended in failure after its second stage malfunctioned, sending the projectile plunging into the sea according to the country’s state media, with the regime vowing to conduct another launch soon.

Full Story

WA’s premier, Mark McGowan: political rockstar or Crood?

West Australian premier Mark McGowan
West Australian premier Mark McGowan announced his resignation this week, saying he was ‘exhausted’. Photograph: Richard Wainwright/EPA

This week, Mark McGowan resigned after six years as Western Australia’s premier. After closing off the state during the Covid pandemic, McGowan was a divisive figure nationally, but in hhis home state he won record-high approval ratings which many believe helped pave the way for Anthony Albanese’s victory at the federal election.

Laura Murphy-Oates speaks to Western Australian reporter Narelle Towie on his rise to national prominence and what led to his resignation.

What they said …

The governor of the Reserve Bank of Australia, Philip Lowe
The governor of the Reserve Bank of Australia, Philip Lowe, before the Senate economics and legislation committee. Photograph: Mike Bowers/The Guardian

***

“We need more people on average to live in each dwelling, and higher prices do that.” – Reserve Bank governor, Philip Lowe

Lowe spoke in Senate estimates today about how the housing market, including rents, is one of the biggest drivers of CPI. So what does Lowe think is the solution? We go back to share houses.

In numbers

A chart that says: 7.1% How much student debts will increase tomorrow

Holders of student loans are bracing for a 7.1% increase on their debts tomorrow with a record indexation rate due to come into effect.

The National Union of Students has joined the calls from a coalition of crossbenchers urging the federal government to freeze Hecs indexation to ease the burden on young people caught up in an “intergenerational wealth crisis”.

Before bed read

A creature dubbed the ambulator roamed across the continent’s arid interior 3.5 million years ago.
A creature dubbed the ambulator roamed across the continent’s arid interior 3.5 million years ago. Photograph: Flinders University

Scientists have identified one of Australia’s first long-distance walkers: a 250kg marsupial with “heeled hands” that roamed across the continent’s arid interior 3.5m years ago.

Daily word game

Screenshot of Wordiply. Play now!

Today’s starter word is: POUT. You have five goes to get the longest word including the starter word. Play Wordiply.

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