We will, of course, be diving into yesterday’s decision by the RBA to leave the cash rate on hold - but I wanted to flag some fascinating comments by RBA Governor Michele Bullock at the post-meeting press conference, where she was asked about how she’s engaging with AI.

In short, Bullock has found a “reverse mentor” - a younger person she’s leaning on to learn AI skills, such as “using it to help me organise my day, and sometimes to ask it to give me questions from journalists”.

I’m keen for your thoughts on the idea of reverse mentors. Would you put your hand up to be one?

The Reserve Bank of Australia (RBA) has kept the cash rate on hold at 4.35%. It’s the second meeting in a row that it has left rates unchanged.

The decision comes after a dip in inflation in June from 4% to 3.8% – the lowest inflation rate since the start of the Iran war in February. Despite this, the RBA said “inflation is still too high”.

Here’s what you need to know about the latest decision.

The cash rate is the interest rate that banks charge each other for short-term loans. We usually refer to changes in the cash rate as the RBA changing interest rates, because the cash rate affects interest rates across the economy, including home loans.

If you have a mortgage on a variable rate, the interest rate impacts your repayments.

If you have a savings account, it affects the interest you earn.

In announcing the hold, the RBA said “inflation is likely to remain high for some time”.

Inflation measures the changes in the prices of goods and services. The latest inflation data showed inflation was at 3.8% in June, which is down from 4% in May and 4.6% in March.

The RBA’s aim is to get this rate down to its target range of 2-3%. The cash rate is its main tool to do this (because people tend to spend less when interest rates are higher).

All four major banks predict the RBA will begin cutting rates next year. For the most part, these predictions are dependent on a further cooling of inflation over the next 12 months. However, the RBA has flagged that there are scenarios where inflation could rise again, such as if global oil supply doesn’t recover.

Housing is one of the things the RBA considers when setting interest rates because changes in the housing market can affect household spending and the broader economy.

Average house prices in Australia have declined in recent months, according to recent data by property tracker Cotality. Prices fell by 0.7% in July, the biggest monthly decline since December 2022, but they are still up 5.3% for the year.

Michele Bullock, the RBA Governor, was asked in her press conference yesterday how the board is thinking about the downturn in housing. In her response, she pointed out that house prices have risen by 50% since 2020 in Australia.

“Yes, the board is looking at housing, and looking at what’s happening in that market because it might have some flow-on effects. But it’s not the main game,” she said.

Reporting by Lachlan Keller.

South Australian Premier Peter Malinauskas has announced an Australian-first Royal Commission into Artificial Intelligence (AI).

The state government said AI is “the world’s most significant technological shift since the industrial revolution” and poses both “significant challenges” and “substantial opportunities”.

The announcement comes the same week that the South Australian Government also signed a memorandum of understanding (MoU) with OpenAI – the maker of ChatGPT. This agreement is also the first of its kind for an Australian state or territory.

Here’s what to know.

A Royal Commission is a major investigation into something of great importance. They are called for by governments – usually by the Federal Government (for example the Royal Commission into Antisemitism) but they can also be called for by states.

Once called, the Royal Commission has strong powers to talk to witnesses, request information and consult with experts.

The South Australian Government announced on Monday that it will hold a Royal Commission into AI. It said the aim is for the independent inquiry to propose policy solutions for the rising challenges of AI.

The list of things it wants the Royal Commission to look into includes:

Data centres will not be part of the Royal Commission. When asked about this in a press conference earlier this week, Malinauskas said it “isn't looking at the infrastructure that underpins AI; it looks at the use of AI”.

It is set to start in October, with a final report to be handed down in July next year.

The announcement of a Royal Commission came a day after the South Australian Premier announced a memorandum of understanding (MoU) with OpenAI.

A MoU is a written agreement between two or more parties that defines the working relationship, expectations and responsibilities.

Malinauskas signed the MoU with OpenAI co-founder and president Greg Brockman during a tour of the company’s San Francisco headquarters last week.

“The government is doing everything it can to make sure artificial intelligence delivers real benefits for people,” the premier said on social media on Sunday.

According to the MoU, the SA Government and OpenAI will work together to “explore opportunities to develop AI skills, accelerate local research and innovation, attract global investment and spread the benefits of AI across South Australia.”

While in the U.S, Malinauskas also met with Apple CEO, Tim Cook, to discuss AI and Apple’s new parental control policies.

Despite all the investment and government interest in the industry, many remain sharply divided over AI and the role it should play in society.

Many new data centre projects have drawn fierce protests from communities over concerns ranging from the noise they generate and their high energy and water requirements to broader concerns about AI itself.

One of the top comments on Malinauskas’ post on Instagram said: “We don’t want this! This is not what South Australia wants for our community. It’s going to cost people their jobs and destroy our environment.”

Reporting by Lachlan Keller.

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We’ve been through the toilet paper shortage. We’ve been through the petrol shortage. And now there is a… sardine shortage?

This past week, anyone after a tin of sardines either paid about 30% more – or found the shelves bare.

Why? Because the protein trend has come for sardines.

Coles told TDA that “demand for sardines has been strong since mid-last year” due to “protein-focused content on social media.”

Woollies similarly told TDA that “amid rising demand for high-protein foods, sardine sales have been strongly outgrowing other canned fish products.”

Both retailers said they were working closely with suppliers to boost supply of the suddenly popular staple.

Anyhoo. We guess the only thing packed like sardines for now is the queue to buy them!

Reporting by Lachlan Keller.