Eden far from a paradise as Australia bushfires hit economy

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Eden far from a paradise as Australia bushfires hit economy
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The peak summer holiday period should bring boatloads of cruise-ship passengers ...

EDEN, Australia/SYDNEY - The peak summer holiday period should bring boatloads of cruise-ship passengers and other holiday makers to the Australian coastal town of Eden, with visitors thronging stores like Lynn Baxter’s newsagent.

“It’s a seasonal town,” Baxter told Reuters from behind the counter of her shop, adding that income was down 85-90%. “The fires have come at a time when there was already a lot of uncertainty about Australia’s economic outlook,” AMP’s Sydney-based head of investment strategy Shane Oliver said in a telephone interview.

The downturn prompted three rate cuts by the Reserve Bank of Australia last year to an all-time low of 0.75%. Financial futures now imply a 50-50 chance of a fourth easing next month. [AU/INT]

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