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WEDNESDAY 27TH APRIL 2011
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One of the real positives for the South Australian economy
and rural communities in particular over the past couple
of months has been the receipt of proceeds from South
Australia’s record grain harvest.
The summer crop harvest was the biggest on record at
10.34 million tonnes, eclipsing the previous record set in
2001-02 of 9.37 million tonnes.
The Department of Primary Industries and Resources of
South Australia put out a report last month estimating the
wheat crop had come in at 5.82
million tonnes, and the barley crop at 2.84
million tonnes with other assorted crops
making up the remainder.
Funds have been flowing into
rural communities, in a
major plus for the SA
WILL THE BRAKES NEED TO BE APPLIED?
Household spending and the housing market are the two soft spots for
the Australian economy according to the Reserve Bank of Australia.
But the RBA expects that business investment will be stronger-than-
average later this year, and is generally optimistic about the prospects
for the broader Australian economy.
The minutes from the RBA’s board meeting on April 5 show that the
RBA expects a strong pick-up in business investment, and this in turn
could put pressure on inflation.
While the RBA outlined that it was content to keep official interest rates
where they are for now, it will be closely watching inflation figures in its
Official interest rates have remained on hold since November, 2010.
BankSA’s view is the RBA is likely to want to give a light touch on
the brakes of the Australian economy later in calendar 2011 to
make sure inflation stays in check, with a small rise in interest
rates of 25 basis points a distinct possibility around August.
GRAIN CROP PROCEEDS A BOON FOR RURAL SA
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