Glenn Stevens says to expect an interest rate cut; NAB accused of covering its “backside” at expense of small businesses: Midday Roundup

Governor of the Reserve Bank of Australia Glenn Stevens says the bank’s next decision on the official cash rate will likely be a cut.

Speaking in Melbourne, Stevens said should interest rates shift in the short term, Australians can expect to see a cut rather than an increase, according to Fairfax.

“Were a change to monetary policy to be required in the near term, it would almost certainly be an easing, not a tightening,” Stevens said.

“The rate of inflation is clearly no impediment to easing. The housing market may be calming, lessening risks from that source, though by how much and how persistently we cannot yet know.”

The RBA left the official cash rate unchanged at 2% on Tuesday.

Australia’s official cash rate was last cut in May by 25 basis points.

NAB accused of covering its “backside” at expense of small businesses

The National Australia Bank has been accused of covering its “backside” at the expense of small to medium sized businesses following the collapse of construction firm Walton in 2013.

Speaking at the Senate’s economic references committee yesterday, Labor Senator Doug Cameron said small businesses and contractors “hit the wall” following the collapse of Walton in late 2013, which left an estimated 1000 subcontractors and small businesses unpaid, The Guardian reports.

Cameron comments came after NAB executive Geoff Green told the committee hearing on Wednesday the bank’s exposure to the Walton collapse amounted to $20 million.

Green also said all the money would be recouped but there would be a small amount left over for creditors.

Shares down on open

Aussie shares have dipped into the red this morning, following in the footsteps of international markets.

The S&P/ASX 200 benchmark was down 74.9 points, falling 1.45% to 5242.3 points at 11:45am AEST. On Wednesday, the Dow Jones closed 50.57 points lower, down 0.28% to 17,867.58 points.