
Were the RBA dissenters right to argue for a July cut?
The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent.
Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher.
A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again.
"Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found.
The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted.
"The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said.
"Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth."
But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise.
The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia".
"That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said.
Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate.
"Members noted that these factors might imply that supply and demand in the labour market were closer to balance."
Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage.
Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May.
Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed.
The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent.
Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher.
A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again.
"Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found.
The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted.
"The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said.
"Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth."
But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise.
The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia".
"That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said.
Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate.
"Members noted that these factors might imply that supply and demand in the labour market were closer to balance."
Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage.
Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May.
Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed.
The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent.
Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher.
A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again.
"Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found.
The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted.
"The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said.
"Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth."
But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise.
The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia".
"That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said.
Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate.
"Members noted that these factors might imply that supply and demand in the labour market were closer to balance."
Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage.
Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May.
Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed.
The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent.
Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher.
A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again.
"Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found.
The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted.
"The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said.
"Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth."
But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise.
The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia".
"That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said.
Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate.
"Members noted that these factors might imply that supply and demand in the labour market were closer to balance."
Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage.
Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May.
Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
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West Australian
24 minutes ago
- West Australian
Runners: I Synergy, ActiveEX, Vanadium Resources & Broken Hill Mines
Global trade tensions weighed heavily on the ASX this week, dragging the index down as the overbought banking sector cooled and the Commonwealth Bank relinquished its title as the world's priciest bank. United States President Donald Trump's threats to impose 30 per cent tariffs on imports again rattled markets, as an August 1 deadline loomed for negotiations that might allow some countries to avoid the levies. Stalled China-European Union trade talks addressing China's overproduction and trade imbalances added to the complex market equation. The consensus is that if global tariffs settle at 15 per cent, it's a pain we can live with. It was a different story for Aussie miners. Buoyed by China's steel supply reforms and proposed mega dams in Tibet, iron ore prices rose to a five-month high of $105 a tonne. Meanwhile, Dr Copper is well and truly back, with the red metal hitting all-time high prices this week of US$12,500 (A$19,000) per tonne. It was a bad week for green diversification, as BP joined a growing list of majors, including Origin Energy, Woodside and Fortescue, in scrapping green hydrogen projects in the Pilbara. With a project pegged at about $54 billion, BP cited a strategic shift back to its core oil and gas business, as fossil fuel demand forecasts continue to see longer tail time horizons for traditional fuels well beyond 2050. This week's Bulls N' Bears Runners reflect the market's mixed mood, with materials soaring and financials stumbling. A plucky AI minnow stole the show when it delivered a 10-bagger in under a week, leaving the ASX stunned. I SYNERGY LIMITED (ASX: IS3) Up 1200% (0.2c – 2.6c) Bulls N' Bears' Runner of the Week is AI-driven digital solutions company I Synergy Limited, which kicked off the week in a big way, with its share price shooting up 700 per cent by Tuesday - curiously on no news to the market. The surge earned management an accompanying 'please explain' from the ASX's autocrats. Intriguingly, the company was unable to quickly extinguish the 'please explain', instead pulling together an announcement about a non-binding memorandum of understanding with Treasure Global Inc. I Synergy said it was negotiating the sale and purchase of advanced AI-based graphics processing units from Treasure and potential joint initiatives to design, develop and deploy AI cloud infrastructure into Malaysia's booming digital economy. Treasure Global, a big NASDAQ-listed tech firm with expertise in e-commerce and AI solutions, makes a prime strategic partner to amplify I Synergy's ambitions in a region craving tech innovation. I Synergy insists they haven't yet reached an agreement, which the company believes could be worth about $600,000 over 12 months via multiple purchase orders. The news caused even more of a stir on Thursday as the stock flew up to a high of 2.6c per share, equating to a 1200 per cent gain on the week on more than one million in stock traded for the day. With AI infrastructure in high demand, this tiny digital dynamo could transform into a regional powerhouse, leaving its penny-stock roots in the dust. ACTIVE EX LIMITED (ASX: AIV) Up 357% (0.7c – 3.2c) Stealing silver on the Runners' list this week was dormant junior goldie ActiveEX Limited, which saw its share price shoot like a lightning bolt on Monday after the company unveiled a maiden mineral resource estimate at its historic Mt Hogan gold mine in northeast Queensland. The little-known Mt Hogan sits within the company's broader Gilverton gold project, which delivered a solid maiden resource of 8.5 million tonnes grading 1.13 grams per tonne (g/t) gold for a respectable 310,000 ounces. Gilverton has a very hot gold address. The world-class 3.5-million-ounce Kidston gold mine, just 50 kilometres northeast, is in the same geological terrain. Kidston churned out more than 1.5 million ounces of gold up to 1990. ActiveEX says its gold riches span an 8km mineralised trend along Mt Hogan granite, with historic drilling confirming it has shallow, high-grade potential. The company's stock opened slowly on Monday at just 1.2c a share, before cracking an intraday high of 3.2c, up some 357 per cent from last week's close of just 0.7c on $330,000 of stock traded. Before the day's share price increase, ActiveEX had a market cap of $1.5 million or about $4.8 per ounce equivalent, which makes for tough sledding in a $5000-an-ounce gold price environment. With two other historic gold centres, Josephine and Comstock, in its portfolio, this long-dormant junior looks ready to unearth a golden bonanza in Queensland's fast-ascending gold-rich terrain. VANADIUM RESOURCES LTD (ASX: VR8) Up 149% (2.05c – 5.1c) Taking out Bulls N' Bears bronze this week is regular Runners' list contender and minerals developer Vanadium Resources. The company shot out of a cannon on Tuesday, after locking in its binding offtake agreement to supply 100,000 tonnes per month of vanadium-rich magnetite direct shipping ore to metals trader China Precious Asia. Vanadium says it will supply 2.4 million tonnes of vanadium-rich magnetite to the heavyweight global metals trader from its world-class Steelpoortdrift vanadium project in South Africa, as soon as December this year. The company says its milestone offtake deal will allow it to establish early cash flows at the fully permitted Steelpoortdrift, a behemoth resource with 680Mt of ore at 0.70 per cent vanadium oxide, which is equivalent to 4.74Mt contained vanadium. Vanadium says China Precious Asia will load and collect the direct shipping ore. The agreement is subject to Vanadium appointing a suitable mining contractor and ensuring the DSO product meets agreed specifications. Management believes material positive operating cash flows can fast-track its development. Steelpoortdrift's vanadium-rich ore also brims with iron-rich magnetite, making it a dual-threat commodity for China's fast-returning steel market. The news sent Vanadium's share price soaring to a new high of 5.1c per share, up from a low of 2.05c at the end of last week, on more than 55 million pieces of paper traded on Tuesday alone. The company has since swiftly completed a $1.2 million capital raise as it seeks out profit-sharing deals and acquisitions to bolster its near-term game plan without derailing the direct shipping ore opportunity. Near-term cash would preserve Vanadium's flexibility to pursue full-scale development at the monster deposit as the iron-ore price begins to improve. Steelpoortdrift's high-grade, low-cost direct shipping option has reinvigorated the company as the former resources minnow vaults into the vanadium big league, potentially self-funding its own mine development. BROKEN HI LL MINES LTD (ASX: BHM) Up 145% (21c – 51.5c) Scooping up the final Runners' spot is a reborn Broken Hill Mining Limited, which re-listed on the ASX on Monday morning after raising $20 million to push forward two operating mines in one of Australia's most storied mining centres. The company unites two Broken Hill mines: Rasp and Pinnacles, which have a rich history dating back to 1883, when prospector Charles Rasp pegged the first block on what became the Broken Hill township. Initially mistaken for tin, his discovery revealed a rich silver vein, birthing BHP - now the world's richest mining company. Centuries later BHP has swapped its New South Wales' roots for Pilbara iron ore and Chilean copper. The original Rasp lode, however, continues to produce and Broken Hill Mines is cashing in on its enduring potential. Rasp hosts an impressive 10.1Mt resource grading 9.4 per cent zinc equivalent – comprising 5.7 per cent zinc, 3.2 per cent lead and 49g/t silver. It produced 25,000 tonnes annulally of zinc equivalent and $20 million in cash flow last year at just 40 per cent plant capacity. The company says its $20 million capital raising will help improve that 40 per cent, as an empty mill means lower efficiency and lower production. Pinnacles, on the other hand, is a high-grade, under-developed gem with a 6Mt resource grading 10.9 per cent zinc equivalent and stellar drill hits such as 8.9 metres at 36.3 per cent zinc equivalent from 11m. Broken Hill Mines says a 4000m drilling program at Pinnacles is underway, with assays pending from 3000m already drilled, aimed at expanding the resource ahead of eventual production. Silver's resurgence and the rebirth of one of Australia's great mining towns fuelled the market's excitement, sending the company's share price rocketing 145 per cent to 51.5c a share from last week's close of 21c. Between Rasp's operation and Pinnacles' shallow high-grade potential, the company looks poised to springboard its silver-lined jackpot back to some of its former glory. Is your ASX-listed company doing something interesting? Contact:

News.com.au
an hour ago
- News.com.au
‘Gosh this is a scam': House price sparks outrage as Sydney property hits new high
A house selling in Western Sydney for almost $2 million has sent fed-up Aussies into an absolute depressed frenzy. A four-bedroom, two-bathroom unassuming red-brick home in Merrylands sold for $1,980,000 in late July, and footage from the auction is going viral. 'Sydney's gone wild. This house just sold for almost $2 million,' the poster wrote, and the clip has already amassed over 200,000 views. The video showcased the front yard crowded with potential buyers, with over 14 registered bidders. The sight of people packed in like sardines, desperately trying to buy a standard-looking home for almost $2 million, really hit a nerve with Aussies. It is especially confronting when you consider the property sold for $660,000 in 2013. The value of the house has almost tripled in just over a decade. Someone called it 'ridiculous', another claimed it 'shouldn't be allowed', while someone else just wrote 'RIP Australia'. 'Our Aussie kids have no chance to buy. It is sad,' one mused. '$2 million for that? Holy hell,' another wrote. '$2 million for what? Not even worth $1 million,' someone else echoed. 'Gosh this is a scam in broad daylight,' another chimed in. It has been a brutal year for Sydney property market. The median house price has surged 2.6 per cent over the June quarter to hit a new record of $1.7 million. This is the biggest increase in two years and partly due to Reserve Bank of Australia cutting interest rates twice in 2025. The official cash rate is down 3.85 per cent and last month the rates held. Real estate agent Vicky Ruan, who sold the family home, told that she always knew the property would be popular with buyers. 'People are looking for a family home. It is close to transport, and also the shopping centre, and people love the location,' she said. Ms Ruan said the sale price wasn't what she expected. Initial market feedback for the property had been over $1 million, but 'mid $1s' – rather than almost $2 million. The agent conceded that the almost $2 million selling price isn't exactly the norm in the area, where the median house price is around $1.3 million. 'At the beginning, I didn't think it'd go at this price. I didn't expect it … but when it goes to market this is just market place.' The real estate agent said that, compared to the turnout they get for other auctions, there was 'quite a lot' of interest. 'There were 14 groups of buyers that were keen to buy it. The market is quite good,' she said. Ms Ruan noted that the vendors were 'very happy' with the price, especially because they were upsizing. 'They were so excited! The vendor is upsizing, and they'd already purchased another property,' she explained. Real estate agent Amir Jahan said the sale price of the property is just a perfect example of what is happening in Sydney right now. 'We are in Sydney – nothing surprises me anymore. A property sold in Mount Druitt last year for $2.3 million,' he said. 'If a house in Mount Druitt sells for that price. Why would I be surprised by Merrylands?' Mr Jahan said that 'prices are going crazy' right now and he feels sorry for people trying to crack into the market. 'The prices are getting higher and higher every day. People can't afford anything,' he said. The agent also pointed out that Merrylands is a really popular area for young families and a desirable suburb. 'Merrylands is a suburb where people aren't just buying because they like the property they're buying because they like the culture,' he said. He explained that he believes people are also are buying from a place of fear that interest rates will drop and prices will rise even more. 'They're scared and jump on it. They don't want to risk it selling for more a month later,' he explained. Mr Jahan said vendors are also becoming increasingly difficult because they won't budge from the prices they expect. 'Two or three years ago, vendors had the mindset they're going to sell, now people have a stricter mindset, and if they don't achieve the price, they won't sell,' he said. The agent argued that things have gotten so bad that if you're not spending a couple of million dollars, you're not getting a quality property. 'If you want a decent property in Sydney you're looking at least $2 million,' he said.

9 News
an hour ago
- 9 News
Australia, UK to sign deal to strengthen AUKUS for half a century
Your web browser is no longer supported. To improve your experience update it here Australia and the United Kingdom are on the verge of signing a 50-year treaty to strengthen the AUKUS alliance even as it is under review by the United States. Some in the Trump administration have cast doubt over the future of the three-nation pact, however the treaty between Australia and the UK is set to shore up the agreement. "This historic treaty confirms our AUKUS commitment for the next half century," UK Defence Secretary John Healey said today. Australia and the United Kingdom are on the verge of signing a 50-year treaty to strengthen the AUKUS alliance. (Australian Defence Force via Get) The treaty is set to be signed during Healey and UK Foreign Secretary David Lammy's current visit to Australia. "Our new bilateral AUKUS treaty is an embodiment of… safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries," Lammy said. It comes as part of an effort from Australia and the United Kingdom to shore up AUKUS amid conflicting views on the pact within the United States. US under-secretary of defence Elbridge Colby, who is leading the review into the pact, has expressed scepticism about AUKUS in the past. The Trump administration is reviewing AUKUS. (AP) However, Australian Deputy Prime Minister and Defence Minister Richard Marles believes the global geopolitical situation requires allies to strengthen their bonds and collaboration. "We are living at a time where in the Indo-Pacific or in the North Atlantic, the world is volatile, there is great power contest," he said. "We've got ongoing conflicts in Ukraine and in the Middle East, and this is a time where we're really grateful for the closeness of the personal relationships but the significance that we have in the bilateral relationship." "It really now means that our bilateral relationship is right up there as among the most important, if not the most important, that we have in the world." CONTACT US Auto news: BYD speaks out about their ongoing battle with Tesla.