THE NEWS WRAP: Reserve Bank under pressure to cut rates

The Reserve Bank is under pressure to trim interest rates today, following new figures that show inflation is soft and new home sales are weak in the Australian economy.

The TD Securities-Melbourne Institute inflation marker rose by 0.3% in April, while the Housing Industry Association called for the RBA to cut rates by 50 basis points after reporting that new home sales have hit a 10-year low.

GFC made Australia more equal: ATO data

Australia is a more equal society thanks to the global financial downturn, according to new Tax Office data.

The research showed a slowing of incomes in Australia’s wealthiest suburbs, partially fuelled by the drop in share prices during the GFC.

Meanwhile, the poorest suburbs have been boosted by pension increases in the 2009 federal budget. 

Swan ready for Palmer election test

Tony Abbott has admitted that he is surprised that mining billionaire Clive Palmer has put himself up for pre-selection in Treasurer Wayne Swan’s seat of Lilley.

Swan said that he is relishing a potential electoral scrap with Palmer, with whom he has sparred publicly this year over the mining tax and the wealthy’ s contribution to Australian society.

Overnight

The Dow Jones industrial average fell by 14.68 points, or 0.11%, to 13,213.63. The Australian dollar was steady at 104.54 US cents.