Higher interest rates have tightened financial conditions across Australia’s economy, but the pain is being felt differently between households and business, according to Chris Kent, assistant governor at the Reserve Bank of Australia, the Wall Street Journal reported. In a speech delivered to a banking conference in Melbourne, Kent added that while demand is rebalancing in the economy, the central bank still has a need to remain vigilant against the danger that inflation gathers renewed momentum over coming months.

The Reserve Bank of Australia continued to warn about ongoing inflation risks at its policy meeting on Tuesday, leaving open the potential for a further interest-rate increase if price pressures remain stubbornly high over coming months, the Wall Street Journal reported. As expected, the board of the RBA chose to keep the official cash rate steady at 4.35%, where it has sat since November. “Inflation is easing but has been doing so more slowly than previously expected and it remains high,” the RBA’s policy-setting board said in a statement.

Australia’s unemployment rate fell slightly in May, in line with a seasonal shift in the job market that saw more people starting work, the Wall Street Journal reported. Employment rose by 39,700 in the month, the Australian Bureau of Statistics said Thursday, beating the expected rise of around 30,000. Economists consider the job market a point of resilience in the Australian economy, which otherwise continues to slow quickly due to the weight of elevated interest rates and rising costs. The unemployment rate fell by 0.1 percentage point to 4.0% in May from April, the ABS said.

Australian businesses reported a reacceleration in inflation pressures in May despite the backdrop of a lifeless economy, the Wall Street Journal reported. The results of the latest monthly survey of firms by the National Australia Bank paint the worst of worlds for the Reserve Bank of Australia, which may need to raise interest rates further before it can claim victory over inflation. Business confidence fell 4 index points to minus 3 index points in May from April, while NAB’s business conditions index fell 1 point to 6 index points over the same period.

For decades, Sydney has been one of the world’s top dining destinations. But now the city is in a critical culinary moment as some of its most high-profile restaurants shutter, many of them victims of the ongoing cost-of-living crisis and the lingering effects of the pandemic, Bloomberg News reported. The notable Redbird Chinese has already shuttered, along with sister venue Tequila Daisy. Last month, celebrity chef Kylie Kwong announced she’ll shut her beloved eatery Lucky Kwong and retire. The acclaimed restaurant Tetsuya’s, which opened 35 years ago, will close its doors in July.

Activity in Australia’s manufacturing sectors could be entering a recovery phase, with firms reporting ongoing demand for labor, with cost pressures reaching their highest level for years, the Wall Street Journal reported. The headline seasonally adjusted Judo Bank Australia manufacturing purchasing managers index rose to 49.7 in May, up from 49.6 in April. A reading above 50 indicates an expansion in manufacturing activity, while a reading below that indicates a contraction.

Australian retail sales remained weak in April, highlighting the plight of consumers in the face of elevated interest rates and rising costs, while signaling a sluggish economy for some time yet, the Wall Street Journal reported. Retail turnover rose 0.1% in April, the Australian Bureau of Statistics said Tuesday. Economists had expected a rise of 0.3% for the month. The weak result follows a 0.4% fall in March, and a 0.2% rise in February.

A major Aussie fashion brand that made dresses worn by superstars such as Taylor Swift and Dua Lipa has entered administration. The Australian franchise of clothing and apparel brand Dion Lee has become insolvent after a partnership deal collapsed, the Daily Mail reported. Antony Resnick, a liquidator from insolvency firm dVT Group was appointed as the administrator for all Australian Dion Lee stores on Thursday. dVT Group is also in the process of considering investors who may be interested in providing financial capital for the venture.

The Reserve Bank of Australia has warned that risks around the inflation outlook have risen, while uncertainty around the economy’s trajectory more broadly remains highly elevated, the Wall Street Journal reported. Minutes of the central bank’s May 6 to May 7 policy meeting showed that while it said there were increased risks that inflation will stay higher for longer than expected, the policy-setting board decided to keep interest rates on hold to avoid “excessive fine-tuning” of policy settings.