Aussie dollar boosts online shopping: RBA

The Reserve Bank of Australia says the recent rise in online spending on imported goods may only be on the back of the rise in the local currency.

Aussie dollar boosts online shopping, says RBA

Online spending for overseas goods is rising in Australia, but the level is still relatively low.



The RBA's quarterly statement shows online spending on debit and credit cards grew at an average annual rate of more than 15 per cent since 2005 traditional card spending grew nine per cent.

Online spending still only accounted for about 10 per cent of domestic card payments.

The Australian dollar rose 0.25 of one US cent after the release of the central bank's monetary policy statement.

The Reserve Bank says the economy is expected to fully recover from the shock of the Queensland floods by the second half of 2011 as coal production in the Sunshine State recovers.

But it's also wary that the rebuilding process could put broad-based, upward pressure on prices and wages .. meaning increases in interest rates in the coming year are still on the
cards.

At 11.37 this Friday (AEDT), the currency was at 101.70 US cents, compared with 101.44 cents just before the statement was released at 11.30am.


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Source: AAP


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