Analysts are tipping the Reserve Bank will cut interest rates today, with the smart money on a 0.25% reduction just half an hour before today’s Melbourne Cup.
Lower than expected inflation is predicted to persuade the RBA of the need for a rate cut, with new government rules making it easier for many Australians to switch banks if their providers don’t pass on any rate cut.
Qantas flights return to normal
Qantas flights are set to return to normal today following a dramatic stand-off between management and unions.
While the return of a full Qantas service will be a relief to many small businesses, especially those in the tourism industry, investors are expecting a $110 million hit to Qantas’ earnings this financial year.
Warning over unemployment social unrest
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The world is on course for a new and deeper recession that will cost many jobs and cause social unrest, the International Labour Organization has warned.
The ILO said that its study of 118 countries shows that 45 of them are at risk of social unrest, with 80 million jobs needed globally over the next two years to avoid another recession.
The Dow Jones industrial average fell 276.10 points, or 2.26%, to 11,955.01. The Australian dollar fell to 105.29 US cents.