RBA to decide on rates tomorrow

RBA to decide on rates tomorrow
1 October 2007 - Melbourne Australia

By Al Robinson

• RBA to decide on rates tomorrow
• Coonan attacks Telstra
• Seven raises Unwired offer by AU$65.6m
• Virgin to compete with Qantas on US route
• Oxfam accuses Oceanagold of harassing villagers

Tomorrow the RBA will make its monthly interest rate decision. The expensive Aussie dollar may be enough to induce an upward adjustment from our central bank. Strong economic growth is backing the currency. Economic output doesn't appear to have suffered any permanent damage from credit fears. But most analysts are expecting no change to the cash rate. Helen Coonan has fired a return shot at Telstra. The federal communication minister has accused the telco of acting irresponsibly with shareholder funds. Seven is offering Unwired another AU$65.6million for all of the business. The initial bid was AU$127 million. Virgin Blue is looking to muscle in on Qantas territory. US and Australian governments are working on an aviation agreement. This agreement would clear the way for Virgin Blue to operate on the Australia-US route. Meanwhile, a five-year study by Oxfam has the charity organisation accusing Oceanagold of intimidating Filipino villagers.

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RBA to meet as dollar thunders
Tomorrow the Reserve Bank of Australia will hold its monthly interest rate meeting. The Australian dollar is at its highest level in 23 years against the US currency. But the futures market indicates investors expect no change to the cash rate.

Govt bites back at Telstra
Communications minister Helen Coonan has criticised Telstra (ASX:TLS) for waging a mass-mailing campaign against her and the federal government. The company is currently suing Coonan. According to Telstra's version of events, she imposed an unfair licensing condition on the telco.