The Reserve Bank of Australia expected to leave rates on hold

The Reserve Bank of Australia (RBA)  is due to announce its decision on interest rates at 2.30pm (AEST) on Tuesday.

The economists surveyed by AAP said the cash rate will remain at a 49 year low of three per cent after the central bank’s board meeting on August 4.

“The RBA appears to have no intention of reducing the cash rate any further,” said Matt Robinson, an economist with Moody’s Economy.com.

“I think a housing market bubble is starting to form, and given the sentiment that governor Stevens expressed in his speech to the Australian Business Economists, that is something that the RBA is watching and that would be a reason for them to maybe hike interest rates earlier.”

There were doubts about whether the RBA would be deterred from raising rates if unemployment continued to rise.

The RBA has kept the cash rate at 3 per cent for three consecutive months.

Michael Turner, an economist with financial markets research group 4Cast, said the prospect of rising unemployment would mean the cental bank could keep rates steady until well into 2010.

“We’re still of the opinion the worse is yet to come and things look better now than they did a couple of months ago, which is why we’re now calling it on hold (in August) rather than going lower,” he said.

“But we still think there’s enough of a story in the lack of utilisation in the economy at the moment that price pressure might be moderate enough at 3 per cent.

“We’re currently chewing on a rate rise in 2010 at the moment. It’s possible, but not until late 2010.”

If you look at the split in the market or the way the debate was being conducted it was very much the idea that the RBA isn’t going to hike because they never have while the jobless rate has been rising.

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PM Rudd launches Australia’s WCup bids

SYDNEY (AFP) — Prime Minister Kevin Rudd officially launched Australia’s bid to host the football World Cup in 2018 or 2022.

Rudd told an official ceremony at Parliament House in the national capital Canberra that Football Federation Australia (FFA) had the full backing of the government to bid for the showpiece event.

“The sheer odds are tough against Australia, eight other countries, but the reason the government had got behind the bid is that we as a nation can rise behind this great bid,” Rudd said.

The premier said the chance to host a World Cup was a great opportunity for the nation.                               

“The challenges are great, but the prize is much greater,” he said.

“I salute those who have had the courage and the initiative and creativity to bring forth this idea.”

English Premier League stars, national skipper Lucas Neill and goalkeeper Mark Schwarzer, also spoke at the launch, urging Australians to throw their support behind the World Cup bid.

FFA chairman Frank Lowy said it would be an “unparalleled opportunity” for Australia to earn official acceptance as a World Cup host.

“On the world stage, there is no event with the same level of global appeal or audience reach as the FIFA World Cup,” the property billionaire said in a statement.

Lowy said Australia?s “secret weapon” for winning the World Cup bid was the Australian people, and Australia’s desirability as a travel destination.

“People from all over the world want to visit our country and thanks to the performance of the Socceroos at the 2006 FIFA World Cup in Germany, as well as the many thousands of Australian fans who followed them, the rest of the world has a very positive view of us.”

Lowy also pointed to Australia’s record of hosting successful major sports events such as the 1956 and 2000 Olympic Games.

Australia are among nine bidders, along with Belgium-Netherlands, England, Indonesia, Japan, Mexico, Portugal-Spain, Russia and the United States, for the 2018 World Cup.

The same nine bidders are also in the running for the 2022 World Cup, along with Qatar and South Korea.

World football governing body FIFA will announce both the 2018 and 2022 World Cup hosts in December 2010.

Australia have already qualified to play in next year’s World Cup in South Africa.

Source  :  www.google.com

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$236 Million Northbridge Link Project

Prime Minister Kevin Rudd was in Perth yesterday to formally announce the federal  government committing $236 million for the Northbridge Link project. 

The underground construction is estimated to cost about $470 million, with the sitework set to start later this year.

The  construction will be commencing in approximately a years time.

The transformation of the the city precinct will include commercial, residential and entertainment opportunities, which would transform the city.

Added will be a waterfront development which will be the greatest transformation of the city of Perth.

This will connect the city with Northbridge and will result in a better integration of rail and bus services.  

Mr Rudd said the project would create about 350 job opportunities for the construction and business sectors and attract an additional 600 passengers on the public transport network each day.

Tendering will be concluded  later this year and construction due to commence next year.

This is an important contribution to employment as well.

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