Economy

The Reserve Bank of Australia (RBA) left interest rates on hold at 4.25 percent today, ending widespread speculation amongst analysts it would cut rates for the third month in a row.

Businesses have recorded a significant jump in sales and profit expectations for the June 2012 quarter, with sales expectations rising to levels not seen since 2003.

Westpac will cut around 400 jobs from its head office, technology and operations teams this year, to compensate for a slow down in loan growth.

The number of trading businesses in Australia rose 0.4 percent in 2010-11, thanks to an increase in new business registrations and a decline in exit rates, the Australian Bureau of Statistics (ABS) said.

Business confidence improved slightly in December despite challenging economic conditions in the Eurozone, though conditions remained flat across the majority of industries.

Businesses are pessimistic about trading conditions and their performance for the first quarter of 2012, as concerns about the European debt crisis and the slowing Chinese economy pulled down the majority of indicators in the Australian Chamber of Commerce and Industry’s (ACCI) Survey of Investor Confidence.

Two consecutive interest rate cuts have failed to boost post-Christmas consumer sentiment, a result economists have called “disappointing.” But slowing inflation means businesses may benefit from more rate cuts in the months to come.

Although Western Australia continues to record strong economic growth, economic uncertainty and small business pain has seen the Chamber of Commerce and Industry (CCI) revise down economic growth forecasts for the current financial year.

When the Reserve Bank cut interest rates, home owners arm-wrestled the banks into passing on the cut. But, as Rohan Gamble finds, small businesses aren’t as lucky:

“Small businesses aren’t just missing out on full rate cuts, business lenders are taking almost double the amount of time to implement the rate reductions.”

Opposition spokesperson Senator Scott Ryan on how the Federal Government has failed small business:

“Small businesses comprise 96 percent of all Australian enterprises. It is a sector that is only ignored at our greater peril, yet it is one to which this Labor Government has refused to listen.”

We’re always hearing about how the Australian dollar compares to the US dollar, and its value is vital to many in the business world. But how many of us actually know what drives the Aussie dollar? A Forex expert explains.

Local business owners’ dissatisfaction with the Federal Government has reached highs not seen since 2008, as they call for immediate action on five key areas.

The majority of businesses expect sales to grow in the new year, despite the fact many continue to feel unsure about an economic recovery occurring any time soon.

Brad Callaughan looks at whether you should be fixing your interest rate.

“The RBA will need to cut rates to keep the economy going, especially coming into Christmas…”

The worst thing local businesses can do in the ‘new GFC’ conditions tipped for 2012 is ‘just try’ to survive. So, here’s some expert tips for surviving an economic slowdown.

There’s been a strong rise in the number of businesses entering external administration (EXAD) for the three months to September, as poor sales and increased creditor activity takes its toll.

The jobless rate fell 0.9 percent last month, as the number of people unemployed decreased by 5,700.

Consumer sentiment has jumped 6.3 percent this month, thanks largely to the Reserve Bank’s decision to cut interest rates.

The Gillard Government’s carbon tax legislation has passed through Parliament, making it certain a tax of $23 per tonne of carbon on the country’s 500 worst polluters will begin in 2012, and businesses aren’t happy.

With Christmas less than eight weeks away, retailers have received a much-need confidence boost with the Australian Bureau of Statistics (ABS) reporting retail turnover rose 0.4 percent last month.