The cost of funding and lending may remain high for a while say Australian Banks. The story published in today's The Age reports that the elevation of the banking funding costs may well go through next year.

The federal treasurer of Australia Wayne Swan says that the interest rates are currently on hold, which is great for home buyers. However, he said that the key benchmark rates will not stay low for a long time and will rise.

Any positive sign in the global economy is good for America too. When the Asian stocks rise America watches, when European economies rebound America watches too. The latest peace of good news is that the consumer confidence in Australia is two years high.

A major player in Australian oil industry Deloitte Oil and Gas Group says training and retaining workers is key for the future of the growth of the oil industry. As the global economy is coping with the challenges posed by the recession there is a place where jobs are available. Worker shortages threaten the oil industry.

The Reserve Bank of Australia today launches its annual Economics Competition in conjunction with the UNSW Economics Society. The competition is for Australian university students and challenges them to examine important and topical economic issues affecting Australia.

The annual rate of inflation in Australia has fallen within the Reserve Bank's target range for the first time in three years. The Consumer Price Index (CPI) has fallen to 2.5 per cent, down from the previous annual rate of 3.7 per cent.

The Australian Bankers’ Association (ABA) yesterday said that the current debate over bank interest margins and bank funding costs is missing much needed balance and accuracy.

Even if the Australian Reserve Bank, which meets today, cuts the interest rates a 25-basis-point and if the banks pass that cut on in full, the average mortgage repayment on a $350,000, 25-year mortgage will drop $46 a month, or $13,761 over the life of the loan. However, if the cut is 50 basis points, the average mortgage repayment on a $350,000 25-year mortgage will drop $91 a month, or $27,306 over the life of the loan.

There are reports that cafes and restaurants are being flooded with professional people looking for work after losing their jobs because of the financial crisis.

The head of the National Australia Bank has defended the decision to cut its dividends and promised that there will be zero job cuts.

The Australian share market is powering ahead, boosted by mining companies and optimism that a government stimulus package in the US could speed up an economic recovery.

Car sales fell more than 11 per cent in December but Australians still purchased more than 1 million new vehicles during 2008.