Here are the key things you need to know before you leave work today.
MINIMUM WAGE TO RISE
The Government today announced the adult minimum wage is to rise to $14.25 an hour. The current adult minimum wage rate is $13.75 an hour. For someone working 40 hours per week, this is an increase of $1,040 per year. The Starting-Out and training minimum wages will increase from $11 an hour to $11.40 an hour, which is 80 per cent of the adult minimum wage.
CREDIT CARDS
January credit card use was similar to what it was in December with total advances outstanding up 4.0% compared with the same month a year ago. Amounts charged however were up over 8% y-on-y. That is the fastest rise in over five years.
NZ SUPER FUND SLIPS
The January 2014 Super Fund report shows this fund has now slipped below $25 billion with a negative return in the month of -1.27% to $24.87 billion. The risk-free benchmark rate was +0.20% for the same month, so it under performed by -1.47%. It is the largest monthly negative result in the current financial year, and the largest since May 2012.
F&P FINANCE RAISE RATES
They have raised their Term Deposit rates by 15 to 30 bps for terms of two to five years.
MORE REVIEWS
Auckland mayor Len Brown has started a major review of the structure of his council controlled organisations. The seven CCOs are Auckland Tourism Events Economic Development (ATEED), Auckland Transport (AT), Watercare, Auckland Council Investments Limited (ACIL), Auckland Council Property Limited (ACPL), Waterfront Auckland, and Regional Facilities Auckland (RFA).
OH NO
The Government-owned Kiwibank is spending $100 million in a big new IT project, replacing its core banking system.
WHOLESALE RATES
Swap rates slipped back by just 1 bps again today across all terms following last Friday's rises. The 90 day bank bill rates are unchanged today at 2.94%.
OUR CURRENCY RISES
The NZD is starting the week range bound against most currencies. The TWI is now 77.8 down just slightly on the day.
(Updated to include the minimum wage rise.)
3 Comments
A visit to China's ghost city
http://www.businessinsider.com.au/chinas-ordos-ghost-city-pictures-2014…
Let's hear it for wage rises all around. Inflate away peoples debt.
Interest rate rises? What interest rate rises? Swap rates down today.
Dont worry about Kiwibank's new system: SAP is a real IT systems company unlike the crowd that marketed/cobbled Novopay together.
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