THE NEWS WRAP: RBA warns Australian businesses could be hit by higher inflation

The Reserve Bank has warned that Australian businesses could be hit by higher inflation, on the back of the booming mining-fuelled economy.

The RBA said that there was only a “limited amount of spare capacity” in the economy and that inflationary pressures could increase if investment and consumption rise too quickly.

ISP price war set to kick off

Small businesses could benefit from a brewing price war between internet service providers, according to Business Day.

ISPs are scrambling to sign up customers ahead of the National Broadband Network, when price and customer service will be the only difference between them.

Small firms wait for Sydney hearing

Although large businesses have been compensated for the late cancellation of the Metro transport system in Sydney’s CBD, small firms have yet to get a hearing, says the Australian Financial Review.

The NSW state government is in the process of making the Sydney CBD more commuter friendly, but has scrapped the $411 million Metro plan.

Employers frustrated by interviewees

Employers are being wowed by candidates in interviews, only to be underwhelmed by their performance once hired, a new study says. Six in 10 recruiters complained that candidates exaggerated their experience in order to get the job.

Overnight

The Australian dollar dropped slightly from its two-year high against the US dollar, but opened higher this morning at US 93.69c.