Australian retail sales slipped unexpectedly in April as warm weather hit spending on winter clothing, data showed on Friday, while department stores suffered from a dearth of discounting events in further evidence of a cautious consumer, Reuters reported. The weakness came despite lower borrowing costs and a cooling in inflation, supporting investor wagers for a further cut in interest rates when the Reserve Bank of Australia next meets in July.
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Australia's central bank on Tuesday cut interest rates to a two-year low as cooling inflation at home offered scope to counter rising global trade risks, and left the door open to further easing in the months ahead, Reuters reported. Wrapping up a two-day policy meeting, the Reserve Bank of Australia cut the cash rate by 25 basis points to 3.85%, saying that upside risks to inflation had diminished as the international developments are set to weigh on the economy.
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Australian wages picked up in the March quarter led by government pay rises, data showed on Wednesday, while subdued growth in the private sector suggested a tight labour market was still no bar to a cut in interest rates, Reuters reported. Investors remain confident the Reserve Bank of Australia will cut by a quarter point to 3.85% at its May 20 meeting, due to cooling inflation at home and global uncertainty caused by U.S. tariff policies.
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Australia's biggest banks face a pivotal earnings test next week as they navigate mixed interest margin prospects in the face of looming rate cuts, persistent inflation concerns and rising mortgage stress, Reuters reported. The results arrive after a politically-charged election set for May 3 dominated by cost-of-living anxieties that are reshaping banks' mortgage books and consumer lending patterns.
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Core inflation in Australia slowed to a three-year low in the first quarter as costs in the services sector cooled markedly, data showed on Wednesday, supporting the case for another cut in interest rates in coming weeks, Reuters reported. Investors are fully expecting a quarter-point rate cut from the Reserve Bank of Australia on May 20 given the darkening outlook for global growth caused largely by U.S. tariffs, even as a stronger-than-expected reading in headline inflation saw some scale back aggressive bets for five rate cuts this year.
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Queensland's government has put a politically connected cybersecurity business into insolvency within six months of it winning a state contract to run a $15 million safety program, ABC.net.au reported. Cryptoloc Holdings' liquidation was executed this month in the Supreme Court after failing to repay $1.51 million demanded by the state for money already advanced, the ABC can reveal. Court-filed correspondence shows a disintegration of confidence amid questions about Cryptoloc Holdings' financial strength and spending.
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Bally's Corp. considered waiting for Star Entertainment to enter voluntary administration before investing but feared the Australian casino group would have been too hard to rescue, said the U.S gaming firm's chairman, Soo Kim, Reuters reported. Rhode Island-based Bally's and the Mathieson family - Star's largest investor - engineered a A$300 million ($188 million) rescue package, handing over the first A$100 million last week. The initial funds will keep Star afloat for 15 months while seeking regulatory approval for the full investment, Kim said.
Australia has swiftly turned down China's offer to "join hands" against Donald Trump's tariffs, as Washington escalates its trade war with Beijing, BBC.com reported. The White House recently imposed an import tax of 10% on Australian goods, but for China - Australia's biggest trading partner - raised tariffs to 125%. China's ambassador to Australia Xiao Qian argued joint resistance is "the only way" to stop the "hegemonic and bullying behaviour of the US", appealing for Canberra's cooperation in an opinion piece on Thursday.
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