THE NEWS WRAP: ANZ chief predicts commodity price increase will lead to another rate cut

A commodity price increase will push the Australian dollar even higher, giving leeway to the Reserve Bank to cut interest rates again, the CEO of ANZ has predicted.

In an interview with Business Spectator, Mike Smith said that the strength of the Australian dollar, which has been trading around the US103 cent level, should be of greater concern to the RBA than the housing market when it comes to monetary policy.

Smith’s comments follow the unveiling of ANZ’s latest results, in which the bank posted a $5.66 billion full year profit, up 6% on the previous 12 months.

Swan ‘knew of mining tax revenue lag’: Report

Treasurer Wayne Swan was told four months ago that the mining tax would not raise any money in its first quarter, with concerns that it may not even bring in revenue during the entire financial year, according to a report in The Australian Financial Review.

Swan, Tax Commissioner Michael D’Ascenzo and Treasury Secretary Martin Parkinson all knew that the mining tax wouldn’t raise funds initially, the report states.

UK economy emerges from its double dip

The UK economy, boosted by the Olympic Games, emerged from its double dip recession in the September quarter, according to official figures.

The Office for National Statistics said that the economy grew by 1% in the quarter, with Olympic ticket sales adding 0.2% to this figure.

Overnight

The Dow Jones Industrial Average increased by 26.34 points, or 0.20%, to 13,103.68. The Australian dollar was down to US103.58 cents.