Australia’s Prime Minister, Julia Gillard, believes that the economy is set to expand, pointing to the $430 billion in investments in the resources sector, low unemployment and sound fiscal finances as sold fundamental factors supporting the economy, according to 9News.
Consumer prices rose 1.6% in the second quarter as a result of rising volatility in the Middle East and the summer floods, reports Siobhain Ryan for The Australian.
Nevertheless, last week, Westpac was the first major bank to project interest cuts, instead of rises, due to growing uncertainty. The central bank has hinted that the cash rate may be put on hold.
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Max Chen contributed to this article.