Reserve tipped to bump up rates

Homeowners face finding another $50 a month to pay the mortgage, with the Reserve Bank tipped to lift official interest rates again today as it battles to dampen house prices and keep inflation pressures at bay.

A quarter percentage point rise this afternoon would mean official rates would have climbed 1.25 percentage points since October, adding more than $240 to the monthly repayments on a $300,000 mortgage.

It would be the biggest run of increases in a 12-month period since the Reserve took the official cash rate from 5 per cent to 6.25 per cent between November 1999 and August 2000.

But the decision could be a close call, with signs of softness in the retail and building sectors lifting expectations the Reserve may wait at least another month before moving in the week before Treasurer Wayne Swan hands down the Federal Budget.

At least mortgage holders may be saved from a “super-sized” lift to their repayments, with the NAB yesterday saying it would not increase its rates more than any move in the official cash rate. Its recent policy of matching rate rises had led to more customers.

That prompted Mr Swan to challenge other major banks to follow NAB’s lead.

TD Securities senior strategist Annette Beacher expects the Reserve board to hold rates today.

But Macquarie Bank rate strategist Rory Robertson said the chance of a rate rise was about 80 per cent.

“Interest rates here remain unusually low, our jobs market is strengthening, China and bulk-commodity prices are booming, so, too, local home prices, and the world’s biggest economy increasingly is getting back on its feet,” he said.

A new survey from Dun and Bradstreet of business executives out today shows sales, growth, employment and capital investment expectations all rising. 

Source  :  www.thewest.com.au

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Socceroos qualify for 2010 World Cup

AUSTRALIA have booked a ticket to the 2010 World Cup finals in South Africa with a scoreless draw against a determined Qatar at the Al Sadd Club in Doha.

Needing only a point to officially seal qualification, the Socceroos got the job done against a youthful Qatar side to ensure back-to-back World Cup appearances for the first time.

The home side proved tougher opposition than they had in three previous losses, but Australia could feel unlucky not to have won after Tim Cahill struck the post with a spectacular bicycle kick in the first half and Qatari keeper Qasem Burhan made several brilliant saves in the second.                                     
 
The win means the Socceroos cannot finish any lower than second in Asia’s Group A, with the top two teams earning qualification.

They joined Asian rivals Japan as the first two sides to qualify for next year’s tournament, after the Blue Samurai sealed their spot with a 1-0 win over Uzbekistan earlier on Saturday.

Hosts South Africa are exempt from qualifying.

Both sides made a tentative start in front of a small but vocal  Doha crowd, with the Socceroos content to keep possession in the hot and humid conditions.

Qatar’s star striker Sebastian Soria Quintana looked dangerous early on and had the first real chance of the half after getting in behind Chris Coyne, but he flashed his shot across the face of goal.

The Socceroos muscled their way back into the game before Cahill was denied one of the great goals by the woodwork in the 27th minute.

Josh Kennedy, who impressed up front, flicked on a Mark Bresciano free kick with his head, before Cahill found himself in space, controlled with his chest and drilled an overhead kick into the right upright.

Harry Kewell became increasingly menacing after switching to the right win, going close to scoring himself before creating another move which led to Vince Grella firing a volley just over the bar in the 33rd minute.

Qatar had two chances late in the half with Cahill blocking Quintana’s effort and Mark Schwarzer punching away an ambitions long shot from Ahmed Faris.

Australia stepped up their game early in the second half with a flash of chances within a 10-minute period.

The first came to an unlikely source in defender Chris Coyne, who had his shot cleared off the line after attempting to turn in a headed Cahill effort.

The impressive Everton midfielder was again another stunner when his powerful drive was brilliantly saved in the 57th minute by Burhan.

Burhan was called into action again to tip over a Kennedy shot from out wide and once more in the 63rd minute when Kewell collected a brilliant Grella ball, cut inside Ibrahim Majed and forced another great save by Burhan with his right foot.

Continued to threaten and fired across the face of goal in the 80th and although they didn’t get the goal they perhaps deserved, it meant little when the whistle blew to ensure another historic World Cup appearance.

The Socceroos now have matches against Bahrain and Japan at home to celebrate.

Source www.news.com.au

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