Three of Australia’s foremost market economists -- with a century of experience between them -- are defying their peers and traders’ bets by predicting the central bank will be forced to resume cutting interest rates.
Australia’s online spending is showing a “clear slowdown” as fears over the Greek economy and a lull between new models of Apple Inc.’s iPad choke off the appetites of consumers, National Australia Bank Ltd. said.
Australian business confidence slipped in July to the lowest level in more than a year, adding to signs higher interest rates are eroding domestic demand and driving the local dollar down by the most in almost two weeks.
Australian business confidence jumped in August to the highest level in four months, suggesting the economy is avoiding fallout from weaker global growth and increasing the central bank’s scope to resume rate increases.
Australian business confidence tumbled in May for a third straight month, led by a slide in sentiment among mining companies after the government announced plans to introduce a 40 percent tax on resources profits.