RBA Forecasts Stable Interest Rate Outlook for Australian Rates

Marcus Jacob
15 Jul, 2014
New York City

Australian stocks closed unchanged and weak bank stocks cut early market indexes advance. Aussie dollar traded below 94 U.S. cents. Coles supermarket entered in a joint venture with GE Capital to sell personal financial products. OZ Minerals lifted its annual production outlook.

[R]5:00 PM Sydney – Australian stocks closed unchanged and weak bank stocks cut early market indexes advance. Aussie dollar traded below 94 U.S. cents. Coles supermarket entered in a joint venture with GE Capital to sell personal financial products. OZ Minerals lifted its annual production outlook.[/R]

Australian stocks closed flat after the early trading gains were trimmed by the weakness in bank stocks.

According to the minutes of the Reserve Bank of Australia, members of the monetary policy said that public demand is expected to be weak in the coming months and investment in mining sector is also expected to decline and gross domestic product growth may be lower than in the previous year.

The central bank also said that rates are likely to remain “stable” for a period of time and stressed that weak consumer demand in the coming months.

The Australian Bureau of Statistics said new motor vehicle sales accelerated in June and jumped 1.7% compared to 0.4% of May.

Australian dollar closed at 93.76 U.S. cents and stock trading turnover increased to 627 million shares worth $3.86 billion.

ASX 200 index inched lower 0.10 to 5,511.30 and the broader All Ordinaries slid 0.10 to 5,495.70.

Stocks in Review

Carsales.Com Ltd dropped 1% to $11.22 after the Australian Council of Superannuation Investors said the online classified and advertising company failed to report on sustainability for at least four years.

Mirrabooka Investments climbed 3.5% to $2.92 after the investment company estimated annual earnings dropped 24% to $7.8 million.

SP AusNet slipped 1.1% to $1.35 after the diversified energy infrastructure developer agreed to pay $500 million to survivors of Black Saturday bushfires in Kilmore East—north of Melbourne.

Webjet Limited rose 0.8% to $2.66 after the online travel service agreed to pay $30 million for online hotel provider SunHotels Group.

Wesfarmers Limited increased 27 cents to close at $43.13 and the company entered in a equal joint venture with GE Capital to offer personal loans and financial products including credit cards. The venture is expected to start operating next year subject to approval.

Whitehaven Coal Limited soared 5.1% to $1.55 after the coal producer expected its total sales in this year to climb 22% on record production.