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Hedge Clippings | 13 February 2026 The normally calm and rational exterior persona of RBA Governor Michele Bullock was rattled this week when her integrity was questioned during a heated Senate estimates hearing, when she was accused by Nationals senator Matt Canavan of "gaslighting" Australians when describing the economy as doing "okay". Given the current state of the Federal coalition, it is no wonder that Canavan tried to distract attention away from both the on-again-off-again shambles within the opposition, or the fact that they have been incapable of landing a blow on either Chalmers or Albanese, in spite of the opportunity, or need, to do so. However, it caused Hedge Clippings to turn to the dictionary (via Google) to clarify the term "Gaslighting", which wasn't a term with which we were overly familiar. It turns out it was the Merriam-Webster Dictionary "Word of the Year" in 2022, and is defined as "the act or practice of grossly misleading someone, especially for one's own advantage". No wonder that Canavan, and no doubt most politicians we can think of, are familiar with and use the term, given how well versed they must be in its implementation. And no wonder that Michele Bullock was so quick to refute the allegation. The RBA may well have jumped too quickly when cutting rates three times last year, only to see inflation start to nudge back up again, but to consider their statement and Bullock's media conference post meeting as "misleading" was bound to elicit a swift rebuttal. What obviously irked Canavan was that Bullock refused to pin the blame for rising inflation on Jim Chalmers and government spending, instead noting that while it contributed, there were other factors involved, including private demand, which had been stronger than expected. She also raised one of the major issues for the economy, namely stagnant productivity, which she termed "Australia's non-inflationary speed limit", and that unless productivity lifts, the economy may struggle to grow sustainably above 2% without fueling inflation further. Unfortunately, we can't see productivity suddenly changing, and if that's the case, it's likely that inflationary pressures will continue to rise, as will interest rates. News | Insights Magellan Global Equities Quarterly update | Magellan Investment Partners Market Update | Australian Secure Capital Fund January 2026 Performance News Bennelong Concentrated Australian Equities Fund |
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