THE NEWS WRAP: Interest rate cut unlikely for December

A new report has cast doubt on the Federal Government’s pledge to return the budget to surplus next year, predicting that Australia could be $32 billion in the red this financial year.

The Westpac analysis shows that the Government will need to find $4 billion in savings just to run a $2 billion deficit in 2012-13.

Rate cut unlikely for December

A further interest rate cut in December looks unlikely, following the release of the Reserve Bank of Australia’s minutes from this month’s rates meeting.

The minutes show that “a case could be made for leaving rates on hold… unless the world economy turned down in a serious way.” The debate over whether to leave rates on hold or not concluded with the decision to lower the rate by 25 basis points.

ABC Learning Centres rebranded

ABC Learning Centres, which went into receivership in 2008, have been rebranded as Goodstart Early Learning.

The not-for-profit Goodstart Early Learning group will rebrand the 650 ABC Learning Centres over the next few months. The centres were founded by entrepreneur Eddie Groves in 1988.

Overnight

The Dow Jones industrial average rose by 65.17 points, or 0.54%, at 12,144.15. The Australian dollar edged down to 101.93 US cents.