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War on Iran ‘making us all poorer’ but RBA may need to hike interest rates again, official warns

about 22 hours ago
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A senior Reserve Bank official says soaring fuel prices from the Iran war is “making us all poorer”, but signalled the central bank may need to hike interest rates again to prevent inflation getting out of hand.Chris Kent, an assistant governor at the RBA, said that a hit to financial markets from a global energy shock would normally argue against further rate rises.“A negative supply shock pushes up prices and leads to weaker economic activity, making us all poorer.Central banks cannot change that,” Kent said.“But they can ensure that the initial rise in prices does not lead to a rise in longer term inflationary expectations and extended inflationary pressures.

”Consumer price growth was 3.7% in the year to February, already far above the RBA’s target of 2.5%, after an unexpected jump in price pressures over the back half of last year.This month’s surge in petrol prices has led economists to warn inflation could reach 5% by the middle of this year, and the RBA has become increasingly concerned that rapid price rises will embed a high inflation mindset among Australians that will be hard to shake.The assistant governor’s comments came as the government said it would back an “economically sustainable” above-inflation wage rise for 2.

7 million workers as part of this year’s minimum wage decision.The ACTU this week argued for a 5% increase, while employer groups have warned an increase of more than 3.5-4% would heap more pressure on businesses struggling with high operating costs and add to economy-wide inflationary pressures.Amanda Rishworth, the employment minister, on Thursday hit back against claims that the government’s recommendation to the Fair Work Commission would make it harder to bring inflation back under control.“Wages are not a key driver of the recent pressures that we’ve seen when it comes to inflation,” she said.

Kent in his speech said the fuel-linked inflationary spike could “necessitate a more restrictive stance of policy”, or higher interest rates,“The supply shock also poses a risk to inflation and longer term inflation expectations at a time when there are ongoing capacity pressures in Australia and several other advanced economies,” he said,Many analysts expect the RBA’s monetary policy board will hike its cash rate for the third straight meeting in early May, despite an almost split decision earlier this month,Financial markets see a roughly 65% chance of a hike in May, and fully anticipate another move higher by June, as well as a further hike by September,With average diesel prices passing $3 a litre across almost every capital city this week, Jim Chalmers revealed that he had asked Treasury officials to model the economic impact of “more challenging circumstances” where global oil prices climb above US$120 a barrel for an extended period, compared with just above US$100 now.

“The end of this war can’t come soon enough for the economy,” the treasurer said.Kent in his speech acknowledged that “the longer the conflict persists, the larger the economic impact will be, and the greater the risk of a material repricing of assets”.“We will continue to assess the countervailing forces operating on the economy, including any tightening of financial conditions, or increase in inflation expectations associated with the conflict, so that the board can set monetary policy to achieve low and stable inflation and full employment over the medium term.”
foodSee all
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Sauces, spreads, sprinkles – and cocktail in a can: whose fridge is this?

Amba sauce “I’m very jar orientated; a lot of my cooking is about combining big flavours. I’m also a sucker for a sour ingredient, and this Iraqi pickled mango condiment is really sour – more so than tamarind. If I’m garnishing a dish with tahini, then I’ll use amba to cut through the richness, otherwise I’ll use it in lieu of citrus.”Stem ginger in syrup “My grandpa always gave me this when I was a kid, and I thought it was disgusting. However, now it’s essential; I often make a (chopped) stem ginger and spring onion salsa – it’s sweet and spicy

about 15 hours ago
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Rachel Roddy’s recipe for potato, aubergine and herb tortino alla fiorentina

The sky is the same shade as old Tupperware, our tortoise appears to have gone back into hibernation, the flat upstairs has builders in, but the kitchen smells gorgeous, thanks to this week’s recipe. It is one of the variations suggested by Anna Gosetti Della Salda for her aubergine and egg tortino alla fiorentina in the Tuscany chapter of Le Ricette Regionali Italiane, an indispensable book that I would save from a fire. The addition of potato to the aubergine makes it an even more substantial, velvet-like and better-tasting dish, I think: a layered vegetable bake crossed with a frittata that fancies itself as having a touch of baked eggs (although don’t expect any puffing up).Instead of the aubergine, you could use artichoke hearts (trimmed and cut into slim wedges), courgettes or cardoon, and, if you fancy, you could also add a crumbled sausage or a handful of diced pancetta. Whatever you use, however, a fundamental stage in terms of both flavour and texture is the initial cooking of the vegetables: frying the potatoes, then covering the pan so they fry-steam into tenderness; the aubergine by simply frying

about 19 hours ago
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How to turn old sourdough into a classic pudding – recipe | Waste not

Bread-and-butter pudding is a zero-waste recipe that has stood the test of time, not least because it’s so practical, comforting and thrifty. Like the best no-waste dishes, it transforms something worthless such as old bread into something truly indulgent. This version is based on Raymond Blanc’s classic, with a few of my own simplifications and adaptations over the years.Most traditional bread-and-butter pudding recipes call for white bread, caster sugar and extra egg yolks, but, unless you’ve got a clear plan for those egg whites, they can very easily end up being wasted. Whole eggs work beautifully in custard, and make very little difference to the richness of the finished pudding; I simply use a touch less milk to compensate

1 day ago
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Fresh start: Hetty Lui McKinnon’s recipes to celebrate spring

Vegetables are in my blood. I grew up surrounded by them; boxes upon boxes scattered around my childhood home, a perk from my father’s job as a wholesale purveyor (of bananas, specifically) at Sydney’s Flemington Markets (now known as Sydney Markets). Our family enjoyed an embarrassment of nature’s riches; an endless supply of succulent Asian greens, rotund cauliflowers, glossy aubergine, perky spring onions, and bulging cabbages that overflowed from crates in and around the kitchen and dining room. We needed to step over trays of stone fruit and cartons of oranges to get to the bathroom. In the summer, I gorged on apricots and cherries until I was sick (true story) – I had no self-control when it came to the fresh stuff

1 day ago
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Kurdish kitchens, baked bean alaska and Mexican soul: the best spring cookbooks for 2026 – review

Nandên: Recipes from my Kurdish Kitchen by Pary BabanBecause the Kurdish people are spread across several national boundaries, their food tends to get lumped in with that of the Turkish, Iranian, Syrian and other communities with which they coexist. Indeed, when Pary Baban opened her first London restaurant she was told by a fellow Kurd she was “brave” to advertise it as Kurdish, given how few people would be familiar with the concept. “If I don’t do it,” she recalls saying then, “and you don’t do it, then who will do it, and when will we put our food on the map?” For those who can’t make it to Nandine (which, like Nandên, means kitchen in Kurdish) in Camberwell to learn from her own hands, this book serves as an admirable guide through a world of slow-cooked lamb and vegetable stews, fluffy breads and cooling yoghurt soups, as well as a wealth of stories from her childhood surrounded by the peaks of Iraqi Kurdistan. Driven out by Saddam Hussein’s government in the 1980s, she and her family fled east into the hills, staying with relatives, farmers, shepherds and foragers, in mountain villages – a journey that ignited Baban’s interest in recording her people’s traditions at a time when it seemed they could easily be lost for good. She began scribbling down their recipes in notebooks: and almost 40 years of cooking later, Nandên is the very fine end result

1 day ago
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‘Truly vile’: the UK’s 25 best (and worst) novelty hot cross buns – tested!

Can you beat a traditional spiced yeast bun at Easter? There’s only one way to find out. Bring on the rhubarb and custard version, the red velvet, the chocolate and fudge, the tiramisu …The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.Hot cross buns, the Easter treat traditionally eaten on Good Friday, now appear in our shops as early as January

2 days ago
sportSee all
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Transgender women athletes banned from female events at Olympics by IOC

about 11 hours ago
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Why Max Verstappen gave me my marching orders from a press conference | Giles Richards

about 11 hours ago
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Rams star Puka Nacua sued over alleged antisemitic remark and biting incident

about 13 hours ago
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Keely Hodgkinson pokes fun at West Ham over world championships stadium dispute

about 14 hours ago
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The nerdy, authentic Oklahoma City Thunder are a breath of fresh air

about 15 hours ago
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MLB 2026 predictions: are the Dodgers inevitable? Maybe not …

about 16 hours ago