Economists predict that the Governor Glenn Stevens and his board will increase the overnight cash rate target by a quarter of a percentage point to 7% by March.

In reviewing its inflation forecast, the bank noted that global financial-market sentiment ``remains fragile'''' because of the U.S. sub-prime rout, indicating it may keep borrowing costs unchanged next month.

The bank indicated yesterday that core inflation would accelerate to 3.25% by December and remain there until June, more than a previous estimate of 3%. This would mean that annual price increases would exceed the 3% upper limit of the bank''s target range.

News Corporation will use its newly acquired Wall Street Journal brand to reach deep into the world''s developing economies with financial news.

Chairman Rupert Murdoch announced this at the company''s annual general meeting in Adelaide. Mr Murdoch revealed plans to replace about one million paying subscribers of the paper''s online edition, with 10-15 million who wouldn''t pay a thing.

Of importance in his plan was a long term plan to penetrate developing markets like China and India, where demand for financial news and services would explode in the decades ahead.

Mr Murdoch said the company needed to ride on the fact that about 50 and 100 million people a year are joining the world economy thereby creating an explosion of wealth and business opportunities and such people need up-to-the-minute information.

Murdoch believes that financial news supported on advertising revenue is likely to generate higher revenue than subscription revenue based business model. One million paying U.S. subscribers may not bring substantial revenue, but ten million visitors from China and India with no subscription revenue may not bring comparable revenue.

Murdoch paid approximately $5 billion to acquire Dow Jones and the deal has still not been approved by the regulators. The advertising driven revenue model may not generate enough revenue to justify the high price target.

The Australian dollar finished weaker today, dipping below $0.8800 during the local session.

At the close of trade the Australian dollar was trading at $0.8877/82, down from yesterday''s close of 0.8967/72.

During the day, the Australian dollar traded between a low of $0.8754 and a high of $0.8900.

Of the ASX 200 index shares, ABC Learning led the gainers with a rise of 11.1% followed by increases in IOOF Holdings Limited by 6.5%, in Hills Industries by 6.3%, in Aristocrat Leisure by 5.7%, and in STW Communication by 5.1%.

Of the ASX 200 index stocks Macquarie Group led the decliners with a fall of 3.7% followed by losses in Paladin Resource of 3.7%, Newcrest Mining by 4%, in AWB Limited by 4.2%, and 5.6% in Sino Gold Mining Ltd.

In other stocks Commonwealth Bank was lower at 1.8%, Australia and New Zealand bank put on 3.6% and Macquarie was down 3.8%. In the Resource sector BHP Billiton was up 0.2%, and Rio Tinto shares dropped 0.5%.

In the energy sector Woodside Petroleum was up by 0.7%, Oil Search put on 1.6%, and Santos was up 1.8%. In the gold sector Lihir was weaker at 1.5%.

Zinifex lost 2.8% after indicating that declining price of zinc coupled with a stronger Australian dollar will cut its revenue this year.

Monto Minerals Ltd. (MOO AU), added 16% after opening its new industrial minerals project in central Queensland State, yesterday.

The retailers traded higher Harvey Norman by 0.9%, Woolworths added 0.5%, Wesfarmers Limited edged higher 0.8% and David Jones gained 3.1%.

Media stocks were mixed, with PBL gained 2.5%, Fairfax lost 0.4%, News Corp was down 0.04%.