The central bank's decision to lower its forecasts for inflation and growth shows the nation's economy is rock solid despite headwinds from Europe, Treasurer Wayne Swan says.
A lower inflation forecast means there is still plenty of scope for the Reserve Bank of Australia (RBA) to drop the official interest rate further, economists say.
Australia's top diplomat has expressed frustration with the slow progress of free trade talks with China, suggesting there is unlikely to be a deal for many years to come.
Australian Workers' Union boss Paul Howes says the Reserve Bank of Australia has signed a "death warrant" for manufacturing by putting its cash rate on hold.
But the coalition insists it is the threat of the carbon tax, which starts on July 1, that is making industry nervous.
Prime Minister Julia Gillard says Labor will bring the federal budget back into surplus in 2012/13 but the opposition cannot make that commitment.
Opposition Leader Tony Abbott said a coalition government would get the budget back to surplus "as quickly as possible".
The value of Western Australian listed companies rose by 9.6 per cent in January, as Australian markets continue to mirror commodities, new research says.
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