RBA DAMPENER ON RATES; US DEFENCE LIFT
RBA dampens hopes on lower inflation
Reserve Bank Governor Michele Bullock has delivered a reality check on prospects for interest rate relief, warning that inflation was still well above the central bank’s 2-3 per cent target range. In a post-board meeting statement, the RBA said quarterly underlying inflation had fallen very little over the past year, with high unit labour costs and high services inflation posing upside risks to inflation. The RBA Governor said central forecasts now had inflation returning to the 2-3 per cent target range only in late 2025. Headline inflation was expected to come down temporarily due to the government’s cost-of-living support, before rising again when that support ended, the RBA head said.
AUSMIN talks beef up US-Australia defence co-operation
Defence and Foreign Ministers from the United States and Australia have agreed to step up a series of bilateral defence initiatives, at their AUSMIN talks in the US. US Defense Secretary Lloyd Austin said the meeting, in Annapolis, Maryland, had agreed to continue deepening their force posture co-operation, including the upgrading of critical air bases in Western Australia and in the Northern Territory to allow more frequent rotational bomber deployments. In addition, increased defence industrial base co-operation would support Australia’s Guided Weapons and Explosive Ordnance Enterprise. Secretary Austin said the signing of two memoranda of understanding on critical munitions would support manufacturing of guided multiple launch rocket systems in Australia by 2025, as well as co-development and co-production of precision strike missiles.
Conroy vows to cut times for defence project approval
Meanwhile, Defence Industry Minister Pat Conroy has promised to reduce timelines for defence businesses in project and contract approval, with more certainty and greater economies of scale in procurement. Addressing a defence industry forum, Mr Conroy said the Federal Government had heard the feedback of industry, with the new defence industry grant development program better tailored to support business in areas of industrial priorities. He said the four-year, $150 million program was easier for business to navigate, and supported Australian small and medium enterprises to leap-frog to the innovation front line. The Minister said the Government would combine related acquisition and sustainment activities where it made sense.
VET agents targeted in international student reforms
Federal Education Minister Jason Clare says the proposed enrolment caps on international students will help to crack down on agents who abuse the vocational education training system. In a media interview, Mr Clare said there were about 10 per cent more international students in universities than before Covid-19, but about 50 per cent more in vocational education. He said “crooks” were feeding off the VET system, by using it as a backdoor to work in Australia. Agents were encouraging people to switch from a university course to a VET course, but the would-be student then never turned up to a VET course. The Minister said legislation now before Parliament would help to protect the integrity and social licence of the VET system.
Harris picks Mid-West Governor for running mate
In the US, the Democrats’ presumptive nominee for President, Kamala Harris, has selected Minnesota Governor Tim Walz as her running mate for the November election. Governor Walz started his political career in Minnesota as a member of the US House of Representatives in 2006, before running successfully for the state’s highest office in 2018. Re-elected to gubernatorial office in 2022, Governor Walz had previously served for 24 years in the Army National Guard and is also a former high school teacher. He is due to be formally endorsed, with current Vice-President Kamala Harris, when the Democrats hold their national convention in Chicago on August 19-22.
Smoother US entry checks in store for visiting Australians
Australians are set to benefit from expedited immigration and customs clearance into the United States from as early as January 2025. Foreign Minister Penny Wong and Home Affairs Minister Tony Burke said that Australia would join the US Global Entry program from next year, with the program initially available to frequent travellers to the US. Under the proposed arrangements, eligible Australians would be able to participate in the Transportation Security Administration (TSA) pre-check program, allowing for expedited screening processes for US domestic flights.