Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There were no changes announced today.
TODAY'S DEPOSIT RATE CHANGES
There were no changes for term deposits either.
SUV SALES SHINE
February new vehicle sales were strong, according to the registration data released today. The industry is talking up the 'strongest February on record' for commercial vehicles, and passenger car sales levels are the 'highest February since 1989'. The usual brands are winning. The SUV segment is now up to 32% of all new sales. Used import data is not out yet, but that is also expected to show similar strength.
ONE HIT WONDER?
The February commodity price index published by ANZ was out today and that showed overall prices were up. They were up in international price terms, but were up even more impressively in NZ dollar terms. The recovery expected by the professionals in wholemilk powder drove much of it. Outside of dairying though prices were soft, particularly for the meat and fibre sector.
BIGGER BUBBLE?
Average Auckland property values surged 5% in the three months to February, but other centres posted more modest gains QV said today. This lift in house prices was the strongest since June 2007. Timaru and Queenstown were the only two areas in the top 10 which were not from Auckland.
A $ TRILLION IN NET LIABILITIES
Across the ditch data released ahead of the RBA decision revealed that building permit approvals rose better than expected driven by NSW and Queensland. At the same time the Australian balance of payments deficit shrank to A$-9.5 bln in the December quarter. Australia's net foreign debt liability rose A$38 bln to a net liability position of A$925 bln. Australia's net foreign equity increased A$46 bln to a net asset position of just A$59 bln at December 2014.
BIGGER APPETITE
The World Bank increased to their 4.625% October 2021 Kauri bond placement by NZ$150 mln to take the total outstanding to NZ$750 mln. ANZ was the sole lead manager and ticket clipper.
WHOLESALE RATES HOLD
Local wholesale swap rates are unchanged today. The 90 day bank bill rate however gained +1 bp to 3.63%.
NZ DOLLAR WAITING
Check our real-time charts here. The kiwi dollar has been holding its strength ahead of today's RBA decision which is due in 30 minutes. It is now at 75.2 USc, up to to 96.8 AUc, and the TWI is at 79.
UPDATE: The RBA today left its policy rate on hold at 2.25%, surprising the market. The AUD rose pulling the NZD woith it - except of course on the cross rates.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
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3 Comments
Now that car loans can be obtained for 1 to 8% interest, rather than the previous 23%, Kiwis are behaving more like Americans and more readily borrowing for cars, rather than mortgage topups.
No point in doing up the house (outside of Auckland) as there's no capital gain to be had anymore, so may as well enjoy a new car (since both are depreciating).
I would be careful believing that car loan rates lower than those offered by the AA are 'real' car loan rates. Car manufacturers and dealers know how to capitalise interest and fees into the advertised price they charge for the car itself. You can get low face-value interest rates that way, but you are paying for it in 'other ways'.
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