RBA's Hunter Sees US Tariffs Dragging on Australian Growth, Jobs
Australia's central bank expects global trade uncertainty will weigh on the domestic economy and employment, according to a senior official, helping explain policymakers' surprise switch to a dovish stance last month.
'The baseline forecast is for recent global developments to contribute to slower economic growth in Australia and a slightly weaker labor market,' Reserve Bank Assistant Governor Sarah Hunter said in a speech in Brisbane on Tuesday. She added that the RBA expects the price of tradable goods will be 'slightly dampened' too.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
29 minutes ago
- Forbes
Global Tariffs: Dynamic Risk Management Meets Its Moment
The recent introduction of US-imposed tariffs has shaken global trade. While economists and financial analysts debate whether this on-again/off-again trade war fits into their model for geopolitical, economic, or supply chain risks, the result is the same: uncertainty and chaos sure to shake up business strategy for the foreseeable future. This new era of volatility will impact all companies regardless of industry or geography, forcing business leaders and technology leaders to think like risk leaders. Everyone must focus on what they can control and adapt swiftly and dynamically. This is the moment for which enterprise risk management was made. Even in times of relative calm but perhaps especially in times of chaos, the purpose of risk management is not to remove all risks but to determine which risks are worth taking — and at what cost — in pursuit of strategic goals and business objectives. Two mantras should dictate your approach: context and control. Context is key to risk response. For example, for the pharmaceutical, airline, and automotive industries, where safety is paramount, pivoting to new suppliers to avoid tariff impact may not be a viable short-term strategy, as new suppliers must be certified for safety and quality. Control is critical for risk prioritization. Trying to predict and plan for what the US administration will do next on tariffs is not a suitable basis for a stable risk management strategy. To respond dynamically but in a collected manner: US tariffs focus on goods, with a range of tariffs applied based on a highly specific focus on the balance of trade with specific countries and the United States. The US administration has not been shy about its desire to bring more manufacturing back to the US, but the US tariffs do not apply to services that make up the majority of the US's trade balance with the rest of the world. Don't forget to include services in your overall context and control lens and: This post was written by VP, Principal Analyst Paul McKay and it originally appeared here.
Bloomberg
an hour ago
- Bloomberg
Hong Kong Has All But Abandoned the Dollar Peg
Interest rates in Hong Kong have been eerily low, raising the question of whether the city's dollar peg is now in name only. Hong Kong surrendered its monetary autonomy decades ago, thanks to a unique mechanism that restricts its currency fluctuation to a narrow band of 7.75 and 7.85 per dollar. That means the city's borrowing costs move in lockstep with those in the US, which are dictated by the Federal Reserve's rate policies.
TechCrunch
2 hours ago
- TechCrunch
Klarna CEO says company will use humans to offer VIP customer service
'My wife taught me something,' Klarna CEO Sebastian Siemiatkowski told the crowd at London SXSW. He was addressing the headlines about the company looking to hire human workers after previously saying Klarna used artificial intelligence to do work that would equate to 700 workers. 'Two things can be true at the same time,' he said. Siemiatkowski said it's true that the company looked to stop hiring human workers a few years ago and rolled out AI agents that have helped reduce the cost of customer support and increase the company's revenue per employee. The company had 5,500 workers two years ago, and that number now stands at around 3,000, he said, adding that as the company's salary costs have gone down, Klarna now seeks to reinvest a majority of that money into employee cash and equity compensation. But, he insisted, this doesn't mean there isn't an opportunity for humans to work at his company. 'We think offering human customer service is always going to be a VIP thing,' he said, comparing it to how people pay more for clothing stitched by hand rather than machines. 'So we think that two things can be done at the same time. We can use AI to automatically take away boring jobs, things that are manual work, but we are also going to promise our customers to have a human connection.' He spoke about how the company plans to balance employees and AI workers. Siemiatkowski said that right now, engineering positions at the company haven't shrunk as much as those in other departments, but he notes that this could shift. 'What I'm seeing internally is a new rise of business people who are coding themselves,' he said, adding that the challenge many engineers have these days is that they are not business savvy. 'I think that category of people will become even more valuable going forward,' Siemiatkowski continued, especially as they can use AI and put their business understanding to good use. He himself is using ChatGPT to help him learn to code and help him understand more of the data side of Klarna. He said doing this has helped Klarna become a better company. Before, he thought he would never catch up in learning what was needed to take a more present role in database conversations at the company. 'I'll take a Slack thread, I'll throw it in ChatGPT and say, 'this makes sense, right?' he said, adding that he uses ChatGPT like a private tutor. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW But he is also aware that AI isn't just about employees. He spoke of the increase in scams and how it impacts high-trust societies like his native Sweden. The Financial Times recently reported on the rise of fintech scams pointing out, for example, how susceptible residents in Singapore can be to them because they are more naturally trusting of various institutions. 'And AI is obviously accelerating this,' Siemiatkowski said. Siemiatkowski also once again addressed why the company stopped using Salesforce and Workday, saying it was because Klarna wanted to consolidate its data in a way that would be easier to feed into AI. He said, for example, if Klarna wanted to gather information about one of its clients, it would have to go through the Google Suite, Slack, Workday, Salesforce, and so forth. 'We realize that the only way forward is going to be to consolidate [data],' he said, adding that the company stopped using around 1,200 small software services. About it's pending IPO? He indicated that Klarna could soon move ahead with it but was otherwise non-committed. 'I can say that I'm happy there's less turbulence in the market,' he said with a smile. And if he had a magic wand and could change one thing? He would make the U.K. part of the EU again. The crowd then erupted into applause.
