Sydney, Aug 13, 2007 (ABN Newswire) - Australian shares have rebounded in morning trade after a dismal day on Friday. The market is up around 1.5 per cent as worries about a global credit squeeze ease, prompting investors to buy back shares that were sold down on Friday.

At Midday the S&P/ASX200 index has risen 90 points to 6,026 and on the futures market the SPI 200's up 71.

In economic news, the central bank has raised its forecasts for underlying inflation this year to 3 per cent, up from 2.5 just three months ago. That's at the very top of its target range which means interest rates could go up once again to keep price pressures in check. The RBA also raised its forecast for economic growth this morning, forecasting a rapid 4.5 per cent rise for the year to June 2008. In its quarterly Statement on Monetary Policy, the reserve also played down the treat from recent turmoil in financial markets saying the outlook for global growth remains bright

The full report is available at the following video and audio links.

Video Link

http://abnnewswire.net/lnk/9U9V005K


Audio Link

http://abnnewswire.net/lnk/NQGDKSVV

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