David Rumbens on the RBA decision and outlook for the economy - Talking Business 2012 - Ep02

Summary: Talking Business podcast chapters: 0:54 - Talking Business news 32:54 - interview Deloitte Access economist David Rumbens on the RBA decision and outlook for the economy. 44:48 - An interview with Elaine Saunders, proprietor of Blamey and Saunders which makes hi tech hearing aids. News overview: Leon and Garry discuss the week’s news in business. This week we hear, among other things, that: . Australian borrowers will have to wait for more interest rate relief after the Reserve Bank surprised pundits by leaving its key rate unchanged. . In fact we might even see rate rises as major lenders actually raise mortgage and business charges as they seek to restore profit margins hit by higher funding costs linked to offshore financial uncertainty. And the ANZ is first out of the blocks, quietly lifting the mortgage rate it charges new customers. . The Australian dollar hit a six month high after the announcement and there is talk that it could go as far as $1.20. It hit 108.12. . Australia's big four banks look to shed more jobs to counter losses in revenue. . Australian construction activity contracted in January for the 20th consecutive month, but the rate of decline is beginning to slow, according to the Australian Industry Group-Housing Industry Association's performance of construction index (PCI). . But job advertisements have posted their largest monthly rise since February 2010 and business conditions strengthened in the last three months of 2011, bolstered by improvements in profitability, employment and trading conditions, according to the NAB. . Australian shoppers kept their cash in their pockets at Christmas in the latest sign that the national economy is cooling off, according to the ABS . Following Gina Rinehart's threat to stop paying insurance that covers the cost of a ransom if her adult children are kidnapped if her three eldest children do not keep details of the family's fortune secret, the billionaire's three eldest children have refused to agree to a suppression order. . Telstra has reported first-half earnings of almost $1.5 billion, a touch below analyst expectations, as a jump in mobile subscribers was countered by a fall in sales at its Yellow Pages Sensis business. . Perpetual chief executive Chris Ryan has left the company after only a year in the role, following a disagreement with the board over the strategy of the wealth manager. . Qantas chief executive Alan Joyce has warned that Qantas will withdraw some services and cut jobs if proposed changes to laws governing its operations are passed. . Spotless has given in to shareholder demands and will allow its private equity suitor to cast its eye over the Spotless business. . The AFL and other major sport bodies held talks with the Prime Minister and senior ministers yesterday to demand changes to the law to protect broadcast rights worth hundreds of millions of dollars.