Over in Australia, economists have accused the Reserve Bank of mishandling the OCR.
Experts claim the central bank has been too focused on keeping unemployment high - impacting the livelihood of hundreds of thousands of Australians.
Australian correspondent Murray Olds says the Reserve Bank is in a tough spot - but it can't undo months of progress.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
If you know it, you know it, and if you
know it, you love it. An American fan of Bluey
has only this week learned why the Healer family are
all wearing paper crowns in the season two episode Christmas Swim.
So while the crowns being worn at Christmas time are
clearly recognizable to us and to Ozzie viewers as the
silly hats that we all reluctantly wear over Christmas, it
(00:28):
turns out that Christmas crackers aren't really a thing in America.
And did you know that Ozzie's sometimes refer to Christmas
crackers as bon bonds. We're going to get Murray Olds
to explain that the man, the myth, the legend is
with us. Now, you don't call them bon bonds, do
you marry mate?
Speaker 2 (00:45):
I think I have heard them called bon bonds, Jack,
But a bon bond can also be a small piece
of confectionery cardecy. Yeah, I think it's probably more where
my linguistic kind of leanings would head in terms of awe.
I think a bond bond, I mean, a cracker is
a cracker, but.
Speaker 1 (01:03):
A bonbond suite is also wrapped in the kind of
style of a Christmas cracker, isn't it.
Speaker 2 (01:07):
It's true, that is true.
Speaker 1 (01:08):
So I wonder if it's got something to do with
the kind of you know, the style of the two.
Speaker 2 (01:12):
Ends, your outstanding.
Speaker 1 (01:15):
Well, these are the issues that matter, clearly, Hey, this
is this is something else our great nations have in common.
Your reserve bank, your central bank is compon criticism for
getting it wrong again.
Speaker 2 (01:27):
Well, that's what a lot of economists are saying. The
Australian cash right four point three five percent. It's been
that way for if I said eighteen months, it must
be nudging up towards two years, So four point three
five percent, and people are squealing and screaming and debate
about the extent of which Australia Is Reserve Bank is
hanging on to that to those settings is now ramping
(01:50):
up because there are nine newspapers. Has the story A
number of economists don't. They call it the dismal science economists.
Some of them believe the bank is getting it wrong
by fixating on an unemployment rate of four and a
half percent. That's where the bank has already said it
wants unemployment to be to take some of the heat
(02:12):
out of the economy. Well, these economists are saying, on
a second, that's you know, you don't have to go
that deep. It could be four and a quarter percent.
I mean, right now, what's the employment rate? Let me
just have a quick look at you there you go. Look,
they want the inflation rate the Reserve Bank to be
between two and three percent. The unemployment rate currently four
point one percent. If you go to four point five percent,
(02:34):
here's the note I was looking for. That means an
extra seventy five thousand people out of work. And do
you really want that? I mean, I'm not sure you
want that. But here's the thing. The Reserve Bank does
not want to take the foot off the brake and
let inflation get away again having gone through all this pain.
That would be simply untenable. They could not do that,
couldn't afflicted them the population. And I suggest Michelle Bullock
(02:57):
might vote yourself out of a job if that happens.
So look at it, balancing act, and you've got e
columnists saying one thing, you know, I mean, there's a
lot of debate about this. The Reserve Bank has got it.
You know, Michelle Bullock is a very very strong central
bank governor. She will take no rubbish from the government
and she'll do it her way.
Speaker 1 (03:17):
So we are currently at four point two five percent
as of Wednesday of last week. So I'm just comparing
it and just right, no, no, no, for our cash rate.
Speaker 2 (03:26):
Yeah.
Speaker 1 (03:27):
So, so a one year fixed period in Australia right
now on four point three five with an LVR of
sixty percent or less is about six point twenty nine
according to NAB six point twenty nine for a year. Yeah,
I think I think you get. I mean, you can
definitely get cheaper one year rates than that in New
Zealand at the moment. But I might be putting you
on the spot here, Murray. Is there a we have
(03:47):
this think called the dual or we had this thing
called the dual mandate for the reserve banks. The Reserve
Bank had to keep in mind interest rates, I had
had to keep a mind inflation as well as unemployment.
But is that is that an explicit requirement of Australia's
Central Bank?
Speaker 2 (04:01):
Now I've not heard that phrase applied to the beautiful
building in Martin Place in Sydney. But look, they are
watching both of those of those metrics, There's no doubt
about it. They're watching unemployment and they are very well
aware of inflation, and the two are inextricably linked. So
to the extent that you've got a name for yours,
(04:22):
I'm not sure we've got a name for ours, but yeh,
that's your bottom gone. They both.
Speaker 1 (04:26):
Look, we had we had, we had a dual mandate.
This was the first thing, the very first thing this
new government did was scraped the dual mandates. So and
they're no longer focusing on maximum employment. They're focusing on
focusing on inflation, and inflation only tell us about the
teams have been breaking into train cars.
Speaker 2 (04:43):
Look, this is a thing that's apparently been going on
for some time, but it's I think it's got some
recent publicity because one young fella just about god himself killed.
He broke if he broke his league in five places,
ReBs smashed his head up. Because what's happening. These kids
are getting onto moving trains, putting themselves in the end
(05:05):
carriage and then breaking into the guards a compartment at
the end of the moving train. Right because trains can
go either way northward and go south. So they've broken
into the unoccupied into the train and then, for reasons
best now to themselves these silly little buggers that start
dangling from the outsides of the trains. Now they can
(05:25):
also be caught riding on the couplings that link the carriages.
And here's the stat last five years, twenty people killed
and thirty six injured inside secure will allegedly secure rail corridors.
It's called buffer riding. And never guess why they're doing it,
but in social media they want to get Facebook likes
or whatever the tik took, whatever the hell it is.
(05:47):
As so some bloken Lapland can go, oh, look at
that crazy Ozzies he splats himself against a pole.
Speaker 1 (05:52):
Yeah, yeah, that's horrible. Yeah, that's crazy. And woolworth shelves
are empty thanks to a strike.
Speaker 2 (06:00):
Not entirely empty, and it's apparently worse than some spots
rather than others. But here's the thing. There are distribution
workers at Big Woolworth's centers three in Victoria, one in
New South Wales. The main ones are down south. And
here's the thing. The workers are picketing. They're on striking.
They're picketing to stop management and other other workers getting
(06:21):
in because they are demanding fairly significant wage rises and
much better conditions Wilworth says it's too much, can't pay it.
So while this is going on, you got you know,
if you're coming over hold they bring your own toilet
paper because we're bringing short. Wulworth stores, bread, drinks, frozen
foods also are being impacted. The United Workers Union says, well,
we're tough teddies heading into Christmas pay up, but we're
(06:43):
going to keep going. And you know there's no end
in sight at the stage. But look, I think if
push comes to show, if you're going to have you
lab all the stuff on the stores shelves by Christmas.
Speaker 1 (06:54):
Yeah, now I'm pleased to hear that, that would be
a real crisis. Thanks Mary, appreciate it. As Eve Australian
correspondent Murray OLDI thank you for your feedback as well. Jack.
Speaker 2 (07:02):
For more from Hither Duplessy Allen Drive, listen live to
news Talks at b from four pm weekdays, or follow
the podcast on iHeartRadio.
If you know it, you know it, and if you
know it, you love it. An American fan of Bluey
has only this week learned why the Healer family are
all wearing paper crowns in the season two episode Christmas Swim.
So while the crowns being worn at Christmas time are
clearly recognizable to us and to Ozzie viewers as the
silly hats that we all reluctantly wear over Christmas, it
(00:28):
turns out that Christmas crackers aren't really a thing in America.
And did you know that Ozzie's sometimes refer to Christmas
crackers as bon bonds. We're going to get Murray Olds
to explain that the man, the myth, the legend is
with us. Now, you don't call them bon bonds, do
you marry mate?
Speaker 2 (00:45):
I think I have heard them called bon bonds, Jack,
But a bon bond can also be a small piece
of confectionery cardecy. Yeah, I think it's probably more where
my linguistic kind of leanings would head in terms of awe.
I think a bond bond, I mean, a cracker is
a cracker, but.
Speaker 1 (01:03):
A bonbond suite is also wrapped in the kind of
style of a Christmas cracker, isn't it.
Speaker 2 (01:07):
It's true, that is true.
Speaker 1 (01:08):
So I wonder if it's got something to do with
the kind of you know, the style of the two.
Speaker 2 (01:12):
Ends, your outstanding.
Speaker 1 (01:15):
Well, these are the issues that matter, clearly, Hey, this
is this is something else our great nations have in common.
Your reserve bank, your central bank is compon criticism for
getting it wrong again.
Speaker 2 (01:27):
Well, that's what a lot of economists are saying. The
Australian cash right four point three five percent. It's been
that way for if I said eighteen months, it must
be nudging up towards two years, So four point three
five percent, and people are squealing and screaming and debate
about the extent of which Australia Is Reserve Bank is
hanging on to that to those settings is now ramping
(01:50):
up because there are nine newspapers. Has the story A
number of economists don't. They call it the dismal science economists.
Some of them believe the bank is getting it wrong
by fixating on an unemployment rate of four and a
half percent. That's where the bank has already said it
wants unemployment to be to take some of the heat
(02:12):
out of the economy. Well, these economists are saying, on
a second, that's you know, you don't have to go
that deep. It could be four and a quarter percent.
I mean, right now, what's the employment rate? Let me
just have a quick look at you there you go. Look,
they want the inflation rate the Reserve Bank to be
between two and three percent. The unemployment rate currently four
point one percent. If you go to four point five percent,
(02:34):
here's the note I was looking for. That means an
extra seventy five thousand people out of work. And do
you really want that? I mean, I'm not sure you
want that. But here's the thing. The Reserve Bank does
not want to take the foot off the brake and
let inflation get away again having gone through all this pain.
That would be simply untenable. They could not do that,
couldn't afflicted them the population. And I suggest Michelle Bullock
(02:57):
might vote yourself out of a job if that happens.
So look at it, balancing act, and you've got e
columnists saying one thing, you know, I mean, there's a
lot of debate about this. The Reserve Bank has got it.
You know, Michelle Bullock is a very very strong central
bank governor. She will take no rubbish from the government
and she'll do it her way.
Speaker 1 (03:17):
So we are currently at four point two five percent
as of Wednesday of last week. So I'm just comparing
it and just right, no, no, no, for our cash rate.
Speaker 2 (03:26):
Yeah.
Speaker 1 (03:27):
So, so a one year fixed period in Australia right
now on four point three five with an LVR of
sixty percent or less is about six point twenty nine
according to NAB six point twenty nine for a year. Yeah,
I think I think you get. I mean, you can
definitely get cheaper one year rates than that in New
Zealand at the moment. But I might be putting you
on the spot here, Murray. Is there a we have
(03:47):
this think called the dual or we had this thing
called the dual mandate for the reserve banks. The Reserve
Bank had to keep in mind interest rates, I had
had to keep a mind inflation as well as unemployment.
But is that is that an explicit requirement of Australia's
Central Bank?
Speaker 2 (04:01):
Now I've not heard that phrase applied to the beautiful
building in Martin Place in Sydney. But look, they are
watching both of those of those metrics, There's no doubt
about it. They're watching unemployment and they are very well
aware of inflation, and the two are inextricably linked. So
to the extent that you've got a name for yours,
(04:22):
I'm not sure we've got a name for ours, but yeh,
that's your bottom gone. They both.
Speaker 1 (04:26):
Look, we had we had, we had a dual mandate.
This was the first thing, the very first thing this
new government did was scraped the dual mandates. So and
they're no longer focusing on maximum employment. They're focusing on
focusing on inflation, and inflation only tell us about the
teams have been breaking into train cars.
Speaker 2 (04:43):
Look, this is a thing that's apparently been going on
for some time, but it's I think it's got some
recent publicity because one young fella just about god himself killed.
He broke if he broke his league in five places,
ReBs smashed his head up. Because what's happening. These kids
are getting onto moving trains, putting themselves in the end
(05:05):
carriage and then breaking into the guards a compartment at
the end of the moving train. Right because trains can
go either way northward and go south. So they've broken
into the unoccupied into the train and then, for reasons
best now to themselves these silly little buggers that start
dangling from the outsides of the trains. Now they can
(05:25):
also be caught riding on the couplings that link the carriages.
And here's the stat last five years, twenty people killed
and thirty six injured inside secure will allegedly secure rail corridors.
It's called buffer riding. And never guess why they're doing it,
but in social media they want to get Facebook likes
or whatever the tik took, whatever the hell it is.
(05:47):
As so some bloken Lapland can go, oh, look at
that crazy Ozzies he splats himself against a pole.
Speaker 1 (05:52):
Yeah, yeah, that's horrible. Yeah, that's crazy. And woolworth shelves
are empty thanks to a strike.
Speaker 2 (06:00):
Not entirely empty, and it's apparently worse than some spots
rather than others. But here's the thing. There are distribution
workers at Big Woolworth's centers three in Victoria, one in
New South Wales. The main ones are down south. And
here's the thing. The workers are picketing. They're on striking.
They're picketing to stop management and other other workers getting
(06:21):
in because they are demanding fairly significant wage rises and
much better conditions Wilworth says it's too much, can't pay it.
So while this is going on, you got you know,
if you're coming over hold they bring your own toilet
paper because we're bringing short. Wulworth stores, bread, drinks, frozen
foods also are being impacted. The United Workers Union says, well,
we're tough teddies heading into Christmas pay up, but we're
(06:43):
going to keep going. And you know there's no end
in sight at the stage. But look, I think if
push comes to show, if you're going to have you
lab all the stuff on the stores shelves by Christmas.
Speaker 1 (06:54):
Yeah, now I'm pleased to hear that, that would be
a real crisis. Thanks Mary, appreciate it. As Eve Australian
correspondent Murray OLDI thank you for your feedback as well. Jack.
Speaker 2 (07:02):
For more from Hither Duplessy Allen Drive, listen live to
news Talks at b from four pm weekdays, or follow
the podcast on iHeartRadio.
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