RMIT economist Jonathan Boymal - Product manager at Opera Software, Phillip Gronvold - Talking Business 2012 - Ep13

Summary: Interview with RMIT economist Jonathan Boymal Interview with Phillip Gronvold, product manager at Opera Software, speaking from Norway. Leon and Garry discuss issues including Australia's inflation rate easing by more than economists expected. The inflation figures are seen as crucial to the central bank's deliberations on the official interest rate next week. The consumer price index (CPI) rose 0.1 per cent in Australia in the March quarter, for an annual inflation rate of 1.6 per cent, down from 3.1 per cent previously, the Australian Bureau of Statistics said. All this makes a rate cut look likely. The federal government could be in for a tougher-than-expected battle to have parliament approve controversial budget measures. Already one independent MP says he won't support a rumoured cut to the diesel fuel rebate for miners, a move that could save the budget billions of dollars. The decision by Peter Slipper to stand aside as Speaker pending inquiries into allegations he misused taxpayer-funded Cabcharge dockets has altered the numbers on the floor of parliament's lower house. It also has increased the bargaining power of crossbench MPs, especially Tasmanian independent Andrew Wilkie who had withdrawn support for the Labor minority government. The federal government has conceded capital gains tax relief in the May budget to superannuation funds planning mergers, following warnings that government policy could have scuttled a number of proposed multi-billion dollar moves to consolidate in the sector. Australia's two-speed economy will become more pronounced as mining investment goes into overdrive and consumer spending remains subdued, an independent forecaster says. Deloitte Access Economics expects a major surge this financial year and next as businesses, especially those in the resource sector, try to boost their production capacity. But a third of Australasian businesses - twice as many as six months ago - now believe that the global economy is improving, research says. Ernst and Young's six monthly Capital Confidence Barometer showed that corporate confidence in the global outlook is steadily improving and Australasian companies are poised for growth. But Western Australia is performing so strongly that the national economy is now being viewed in terms of Australia as a whole and Australia excluding WA. The latest report card by Commonwealth Securities (CommSec) on Australia's states suggests WA's influence, courtesy of the mining boom, has become so powerful it warrants its own special consideration. A pick-up in mortgage inquiries for the first time in two years could be an early indicator that house prices will recover in future months. Research by lending data provider Veda shows that while overall consumer credit demand remains soft, home loan inquiries rose 1.5 per cent in the year ending March - the first annual rise since the 2008-2009 global financial crisis. A new study shows that Australians borrow more than $1.6 billion from friends, family and colleagues every month. The average Aussie borrows about $200 per month in this way, for unforeseen or emergency situations, the survey by the Commonwealth Bank found.