The Economy

The Reserve Bank governor, Glenn Stevens, and the rest of the board face a difficult decision next Tuesday.

Rate cut highlights Australia's fall

It's a far cry from five years ago when the nation's benchmark rate was a developed-world high and the Aussie was worth more than the greenback with the mining bonanza in full swing.

RBA Governor Glenn Stevens will retire next month.

Banks respond to the Reserve Bank rate cut as one

Our biggest banks move fast. Either that, or they collude. At 2.37 pm on Tuesday within minutes of the Reserve Bank cutting its cash rate to an all-time low, the Commonwealth Bank announced a completely different way of responding. Instead of passing on some of all of the cut, it would only pass on half and hand some of the rest out to customers as higher term deposit rates.

"It's the new norm": Treasurer Scott Morrison.

Banks short-change mortgage customers

The Commonwealth and National Australia Banks have short-changed their mortgage holders by passing on only a fraction of the Reserve Bank's 0.25 per cent cut in interest rates, choosing instead to reward depositors by lifting the rate they offer on term deposits.

US economic growth was unexpectedly tepid in the second quarter.

US economic growth slows although rebound expected

US economic growth unexpectedly remained tepid in the second quarter as inventories fell for the first time in nearly five years and business investment weakened further, offsetting robust consumer spending.

The consumer price index rose just 1 per cent from the same period a year earlier.

Inflation at lowest level since 1999

Annual inflation has fallen to its lowest level in 17 years, opening the door for a potential interest rate cut when the Reserve Bank board meets next week.

Sydney construction is powering the state's economy.

Nation's south-east corner powers the economy

The country's south eastern states are continuing to power the national economy as it 'rebalances' away from the mining states of Queensland and Western Australia after the end of the 'once in a century' mining boom.

Small Business

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