RBA minutes reveal rate cuts still possible, Collingwood FC pays ACCC infringements, NAB profits up: Midday Roundup
Tuesday, August 20, 2013/
Rates are most likely to stay unchanged next month, as the Reserve Bank of Australia’s August minutes did not signal an immediate intention to drop rates further.
Despite the likelihood rates will remain flat for some time, the RBA did not close the possibility of a future cut, saying it would continue to examine economic data over the months ahead and respond appropriately.
When the Reserve Bank met earlier this month, the cash rate was cut from 2.75% to a new low of 2.5%, influenced by below-trend growth and rising unemployment.
The meeting minutes also indicated it was likely the exchange rate would fall more in the coming months, further helping to rebalance the economy.
Collingwood Football Club pays ACCC infringement notices
The Collingwood FC has paid two infringement notices totalling $20,400 for allegedly failing to state on advertisements the total minimum price payable for a three-game membership and Collingwood guernsey.
The Australian Competition and Consumer Commission issued the infringement notices when it discovered the advertisements, which were published in the Herald Sun newspaper and emailed to more than 90,000 people in May 2013.
The ads suggested the three-game membership and guernsey were available for “only $20”, when in reality it cost $120, payable over six months.
“Consumers should know the real price of goods and services so that they are able to make informed purchasing decisions,” ACCC chairman Rod Sims said in a statement.
“Advertisements that do not state the real price of goods or services have the potential to draw in consumers based on half-truths.”
NAB profits up in third quarter
Banking giant NAB has posted a small lift in its third quarter profits thanks to strong momentum in its personal banking division and lower loan losses in its UK business.
For the quarter unaudited earnings rose to $1.5 billion, approximately 2% higher than the March quarter.
NAB chief executive Cameron Clyne said in a statement operating conditions for business banking remained challenging because of weak confidence in the business sector.
Clyne said NAB’s positive performance was also attributable to its “tightly managed” costs during the period.
“In Australia, excluding upfront implementation costs relating to the changes to the Group’s organisational structure and operating model, operating expenses were flat,” he said.
Shares open lower
Aussie shares have opened lower this morning, as Wall Street closed lower overnight. The S&P/ASX200 benchmark was 13.6 points lower at 5098.9, just before midday. The Dow Jones closed 0.47% lower yesterday, down 70.73 points to 15,010.74.