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Teacher ‘snapped’ when he stabbed principal after being told contract would not be renewed

Colleagues of a teacher who "snapped" and stabbed a school principal say they are still reeling from the attack, as details of his "catastrophic" mental health spiral emerged.

Kim Ramchen, 37, on Wednesday pleaded guilty to three charges of intentionally causing injury, assault with a weapon and unlawful assault, over the stabbing in December.

The Keysborough College teacher armed himself with a 10-centimetre knife from the Melbourne school's kitchen and set upon principal Aaron Sykes after being told his contract would not be renewed.

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Kim Ramchen / Keysborough College

As prosecutor JJ Jassar read the summary to Dandenong Magistrates Court, Ramchen sobbed into his hand over the video link.

Jassar said Ramchen entered the principal's office aggressively and aimed for Sykes' neck, with the pair struggling to the ground.

Teacher Emma Pascoe, who was in a room next door, ran over after hearing screaming and saw Ramchen standing over Sykes, swinging the knife.

She said she still experiences flashbacks to the incident and turned to alcohol to drown them out.

"The sound of students messing around and screaming 'help, help' still sets me off into panic mode," she said in a statement read to the court.

Ramchen walked off after being pulled away by assistant principal Matthew Sloan and the school was placed into lockdown.

But he returned, armed with a larger chef's knife, holding the blade to the principal's face.

Ramchen was tackled to the ground and subdued by several staff before emergency crews arrived.

School nurse Stacy Bender, who treated Sykes, recalled the look of fear in his face.

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Kim Ramchen principal stabbing Keysborough CollegeKim Ramchen principal stabbing Keysborough College

"This has changed how I see a school environment, a place that should be safe now feels more vulnerable," Bender said in a statement to the court.

Ramchen said during a police interview he "mentally snapped" and intended to just incapacitate the principal.

"My blood just went to my head and I became incredibly angry and emotional," he said.

Defence barrister Amelia Beech said Ramchen's conduct was the culmination of substantial difficulties that had plagued his life.

He is the son of former Price Is Right host Jacqui Ramchen who disappeared in 1992, with his late father charged over her killing until a magistrate found there was not enough evidence to commit him to trial.

Ramchen had taken on a parental role within the family after his mother disappeared and his father died from cancer when he was 14.

"The lasting effects of his tragic and dysfunctional childhood, the enormous challenges of adulthood, stressful circumstances of parenthood and the debilitating effects of undiagnosed mental ill health all collided in a spectacular fashion," Beech said.

Ramchen has been diagnosed with autism, depressive disorders and anxious distress, which forensic psychiatrist Danny Sullivan found was "causally connected" to the offending, she said.

At the time, the teacher's marriage was falling apart and he was unable to understand why his contract was not renewed, the defence added.

"The offence has been committed in the context of a … catastrophic mental health crisis," she said.

Ramchen will be sentenced on Monday.

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Major bank’s bleak warning of more rate pain in matter of weeks

Two of the big four banks are now predicting a fourth consecutive rate rise to start the year as the Reserve Bank of Australia (RBA) tries to fight rising inflation, caused in part by the war in the Middle East.

The RBA yesterday raised the cash rate by 25 basis points to 4.35 per cent for the third time, effectively unwinding last year's round of cuts.

Governor Michele Bullock acknowledged that Australians were "feeling poorer" but said the increase was necessary to give the central bank "space" to assess the global and domestic situation.

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Today, NAB updated its monetary policy forecast, and now predicts rates to be raised again to 4.60 per cent at the RBA's next meeting in June.

"The governor explicitly called the 'wait and watch' strategy the 'wrong term' in her press conference, and so it doesn't appear that the board thinks it has time on its side," the bank's economists Sally Auld and Gareth Spence wrote.

"This, together with the board's clear preference to prioritise the price stability aspect of its dual mandate given a broadly benign labour market forecast, suggests to us that the next rate rise will come in June."

Westpac had been predicting further rate rises before yesterday's hike, but believes it may not be until later this year.

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Workers in the Sydney CBD.

"We think the chance that they now hike rates in June is less than what we thought before, I mean, it was never a certainty but it was our base case," the bank's chief economist Luci Ellis said.

"But we still think that there are likely to be rate hikes from here, but perhaps pushed out a bit from what we previously thought."

The remaining big four banks, Commonwealth Bank and ANZ, are currently predicting a hold in June.

All four big banks passed on yesterday's rate rise onto their customers, which will take effect in the coming weeks.

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‘I won’t be forgetting him’: Victim of fatal crash in Sydney’s Royal National Park identified

A 20-year-old man who died after becoming trapped in a sinking car that had swerved into the water in Sydney's Royal National Park has been identified as a university student and budding cricketer.

The car is believed to have veered off the road before crashing into Audley Weir in the Sutherland Shire about 1.15am.

The 20-year-old driver of the blue Audi was able to free himself from the sinking car and was taken to hospital for mandatory testing.

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Car being pulled from the water.

He has since been released and was in custody at Sutherland Police Station.

The passenger became trapped in the vehicle, and his body was found, along with the submerged car, following a multi-agency search.

He has been identified as 20-year-old Muhammad Kashif, a university student studying electrical engineering and a budding cricketer from Casula.

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20-year-old Muhammad Kashif.20-year-old Muhammad Kashif.

"Everybody will be remembering him because of his energy and smile," former cricket coach Omar Khan told 9News.

"We can't forget his smiley face.

"I won't be forgetting him for the rest of my life."

Sergeant Steven Planinic said the 18-year-old driver of a second vehicle, a silver Mercedes, was speaking with police and the car had been seized.

"There was a passenger in the second vehicle, who is voluntarily at the police station providing police information about what happened," he said.

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Divers search for the car and the body of the passenger trapped inside.

Police say there does not appear to have been any contact between the two vehicles.

"Charges may be pending for both drivers," Planinic said. 

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