Over the weekend, NAB has identified and fixed the problem which caused the payment and transaction processing delays which the bank has experienced in recent days. NAB can now advise that for the majority of our customers these payment issues have been resolved.In some instances customers may have experienced duplicate or multiple transaction entries. These have been identified and are currently being corrected automatically by NAB. There is no additional action that customers need to take.

NAB wants to ensure that our customers are not left out of pocket as a direct result of the delays which have occurred in recent days. A process is being put in place to identify where NAB customers may have inadvertently incurred fees, interest or other charges from the bank as a direct result of these delays. We will proactively undertake this work over the coming weeks without the need for customers to contact or notify us. Where customers have been charged a fee or have incurred a cost from another institution as a direct result of these delays, they are encouraged to contact us by registering at www.nab.com.au/compensation or contacting us on 13 22 65.

Delayed value exchanges from NAB to other banks have also been processed over the weekend which means that other banks can process any salary or other payments to their customers which may have been impacted by the processing delay. NAB again wants to extend its sincerest apologies and thanks to our customers for their ongoing patience and understanding as we have worked to resolve these issues. We can assure every NAB customer that their accounts and other banking products are completely secure and that all account balances will be brought fully up to date.

(Source: NAB, Monday, 29 November 2010)

Darwin’s residential market is “massively overvalued” and is “ripe for a pop” according to SQM Research.

The property research group said the property price bubble has been driven by Darwin’s commodities boom since 2003, as well as the surge in defense forces in the area which have contributed to a recent population increase and housing shortages.

SQM Research claims “investors have come to the party” over the past few years, pushing valuations on Darwin property “out of control”. The group likened the market to the Gold Coast, Sunshine Coast and Mandurah which have since substantially corrected.

Managing director Louis Christopher said: “If there is going to be a bubble that is going to pop, it’s going to be Darwin. Investors should really do their research and reconsider all their options before investing in the Darwin market.”

(Source: BN | 17 Nov 2010)

Combined property values for houses increased by a total 41% and 42% for units over the past five years, a new report reveals.RP Data’s latest property pulse report also shows that the average annual increase for houses is 7%, while for units its 7.3%.

“In dollar terms, house values have increased by a total of almost $140,000 over the last five years and unit values have increased by approximately $123,000,” the report said.Sydney was poorest performing capital city with an increase of just 30% over five years, compared to Darwin house prices which increased 92%. Melbourne recorded a 61% increase in its house prices.

According to RP data research analyst, Cameron Kusher, Sydney underperformed because prices were already so much higher than the rest of the country.As for house rents, the greatest increases were also in Darwin – up 77%, while in Perth they increases 60% and just 34% in Sydney.

But according to Kusher, a lack in housing stock could bring an increase in rents.“At the moment property values are slowing right down but with Sydney having an increase in population there’s scope for increase in rents,” he said. “I’d certainly suggest we’ll see increases above [the consumer price index] for the next 12 months.”

(By BN | 12 Nov 2010)

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.75 per cent, effective 3 November 2010.

Statement by Glenn Stevens, Governor Monetary Policy RBA

The global economy grew faster than trend over the year to mid 2010. Global growth will probably ease back to about trend pace over the coming year as strong recoveries in the emerging world give way to a more sustainable pace of expansion and growth remains subdued in the United States and Europe. At the same time, concerns about the possibility of a larger than expected slowing in Chinese growth have lessened recently and most commodity prices have firmed, after a fall earlier in the year. The prices most important to Australia remain at very high levels, with the result that the terms of trade are at their highest since the early 1950s. The turmoil in financial markets earlier in the year has abated, though sentiment remains fragile.

Information on the Australian economy indicates growth around trend over the past year. Public spending was prominent in driving aggregate demand for several quarters but this impact is now lessening. While there has been a degree of caution in private spending behaviour thus far, the rise in the terms of trade, which is now boosting national income very substantially, is likely to lead to stronger private spending over the next couple of years, especially in business investment.

Asset values are not moving notably in either direction, and overall credit growth remains quite subdued at this stage notwithstanding evidence of some greater willingness to lend. The exchange rate has risen significantly this year, reflecting the high level of commodity prices and the respective outlooks for monetary policy in Australia and the major countries. This will assist, at the margin, in containing pressure on inflation.

The demand for labour has continued to firm. While the labour market is not as tight as in 2007 and 2008, some further strengthening would appear to be in prospect, judging by the trends in job vacancies. After the significant decline last year, growth in wages has picked up somewhat, as had been expected. Some further increase is likely over the coming year.

Given these conditions, the moderation in inflation that has been under way for the past two years is probably now close to ending. Recent information suggests underlying inflation running at about 2.5 per cent, with the CPI inflation rate a little higher due mainly to increases in tobacco taxes. Both results were helped somewhat in the latest quarter by unusual softness in food prices. Inflation is likely to rise over the next few years. This outlook, which is largely unchanged from the Bank’s earlier forecasts, assumes some tightening in monetary policy.

For some time, the Board has held the stance of monetary policy steady, which has resulted in interest rates to borrowers being close to their average of the past decade. This allowed some time to observe the early effects of previous policy changes and to monitor the uncertain global outlook. The Board is also cognisant of differences in the degree of economic strength by industry and by region.

However, the economy is now subject to a large expansionary shock from the high terms of trade and has relatively modest amounts of spare capacity. Looking ahead, notwithstanding recent good results on inflation, the risk of inflation rising again over the medium term remains. At today’s meeting, the Board concluded that the balance of risks had shifted to the point where an early, modest tightening of monetary policy was prudent.

Affordability has improved considerably since the beginning of the year, a new report has found.According to Rismark and RP data’s Hedonic Home Value Index, Australia’s housing market flat lined in second half of 2010 – improving affordability issues.

Since the market started turning at the end of May, Australia’s capital city home values have declined by a total of 1.0 per cent seasonally-adjusted.

Over the September quarter, Australian capital city home values declined by just 0.4 per cent seasonally-adjusted.RP Data’s senior research analyst, Cameron Kusher commented that with market conditions expected to be flat for the remainder of 2010, astute investors should now look for opportunities to enter into the market.

“Early signs suggest that rental rates are once again improving, listings are at above average levels, and leading indicators such as time on market and vendor discounting are creeping up,” Mr Kusher said.

“For those active in the market there is increasing scope for price negotiation and less competition amongst buyers with an above average number of properties for sale. These conditions are likely to afford opportunities to purchase property at more competitive prices.”

(Source: Staff Reporter, Monday, 01 November 2010)