Alex Tarrant presents 90 at 9 in association with ASB. The New Zealand dollar ended the week on a strong note, above 68 USc and around 12 year highs against the Pound. This was as global sentiment rose after the level of existing US home sales rose to its highest annual level since August 2007. There was also some good news out of Germany, with sentiment and activity rising for services industries there.
Central bankers meeting in Jackson Hole, Wyoming, have been warned about high inflation down the track if they keep interest rates too low for too long. However government stimulus is set to stay, with the road to recovery looking rather bumpy.
Finally, the term deposit war in New Zealand continues to heat up, with ASB and SBS moving in the 9 month market. SBS has also made a play with its three year rate, raising it to 5.75%. The Reserve Bank has told the banks they need to get more funding from local term depositors instead of the 'hot' wholesale money from global markets, which is putting some pressure on the local banks which have been able to rely so far on local funding.
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