Here are the key things you need to know before you leave work today.
INFLATION EXPECTATIONS MUTED
The RBNZ survey out today on inflation expectations shows little change in what consumers and business expect for future prices. This stable set of price expectations will comfort the RBNZ ahead of their March 13 OCR review. They surveys show people expect house prices to rise by 5% or less in the coming year. They also expect the exchange rate to stay about where it is now.
HOME LOAN AFFORDABILITY IMPROVES
The Roost Home Loan Affordability report for January was published today and it actually revealed some substantial shifts. The fall in January median house prices was in almost all regions, interest rates were low, and income growth picked up a bit. That saw some sharp improvements in affordability. No doubt that the RBNZ LVR limits are encouraging these changes.
HOUSING NZ RAISES MORTGAGE RATES
HNZC have raised their one year home loan rate by +10 bps to 5.50% and their 2 year one loan rate to 6.30%, up 35 bps.
ANZ RAISES TD RATES
ANZ has raised term deposit rates in an attempt to stay at the head of the pack of its main rivals in the term deposit market. Increases ranged up to +20 bps and were concentrated in terms of 9 - 18 months.
FARMERS CAN BORROW AT 4%
ANZ has launched a pasture remediation loan at 4% to help farmers improve the productivity of their land.
BNZ KIWISAVER GROWTH
Cross-selling is working for BNZ, as is the link to Fly-Buys. The bank has announced it now has $200 mln in its very new KiwiSaver scheme after 9 months, with 37,000 people signing up. But this is still only 1.6% market share because there are almost 2.7 million people currently in KiwiSaver. ANZ Investments in contrast has $2.76 billion in their schemes. BNZ who started late has a very long way to go yet to be considered a regular player in the KiwiSaver market.
WHOLESALE RATES
Swap rates rose marginally across all terms, essentially making back yesterday's fall. The 90 day bank bill rates edged up again today with a net gain and are now at 2.96%.
OUR CURRENCY RISES
The NZD reacted very little to today's news. The TWI is now 78.1 up just slightly on the day.
4 Comments
Sometimes I come across a winner. This interview of John Le Carre is one of them.
Its in 4 parts, the next part should be in the upper left quadrant of you screen.
I haven't watched Nicholas Shaxson but he should be worth watching too.
Regards Andrewj
http://ragingbullshit.com/2014/02/24/two-must-watch-interviews-on-money…
Does anyone own any bitcoin? or perhaps the question should be did anyone own any bitcoin?
http://news.cnet.com/8301-1023_3-57619465-93/bitcoin-exchange-mt-gox-of…
A meeting today with the residents (and investors) of Upper Riccarton "to give more choice of housing type" (as Rosseau said "my freedom starts where your's ends").
The speaker Alan(?) said that we have a statutary obligation to have a town plan and the present one is out date ("it was before the earthquake"). Central government had certain imperatives (a,b,c). Someone asked if population increase was another of those imperatives spoken of. Alan(?) said "well we have to have population increase to grow the economy and increase the wealth and there is immigration, so I suppose it is"
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