Economists have predicted that the Reserve Bank of Australia will keep interest rates on hold today, although a cut is anticipated before the end of 2012.
An NAB survey found that just five out of 28 leading economists expects the RBA to trim rates from the current 3.5%, although it’s anticipated that the central bank will look to act in November if several economic indicators don’t improve.
Cut spending and wage growth: Garnaut
Government spending and wage growth will both need to be kept in check over the coming decade in order to cope with a downturn in Chinese investment in Australia, economist Ross Garnaut has warned.
Garnaut, a former government advisor, told The Australian Financial Review that Australia will have to make some “shared sacrifices” as we approach “tough times” due to several overlapping economic factors.
Aussie online shoppers ‘being ripped off’
Australian businesses are ripping off consumers who shop online by charging excessive shipping fees, according to a new report.
The Experian research found that just 24% of businesses that sell online offer free shipping. With shipping prices averaging $25 to $30, Experian said that retailers are making “margin” on delivery fees.
The Dow Jones Industrial Average was up 77.91 points, or 0.58%, to 13,512.40. The Australian dollar was up to US103.65 cents.