Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There have been no mortgage rate changes today. But check out what happened to wholesale rates today, below. Despite all that, we will have a key rate announcement tomorrow morning.
TODAY'S DEPOSIT RATE CHANGES
The ICBC filled out their rate offers today for the full five years. They are offering about +20 to +30 bps above the main banks.
The total manufacturing sales volume rose in the December 2014 quarter, with rises across several industries, Statistics New Zealand said today. This rise was led by a +7.2% rise in petroleum and coal product manufacturing (!) said Stats NZ, with meat and dairy product manufacturing up by +0.9%.
SLOWER FOR LONGER
Japan’s economy grew slower than initially estimated in the October-December quarter, a sign that anemic household spending and business investment after a recession last year continue to weigh on the recovery. Markets were expecting +2.2% growth in Q4 but it came in at +1.5% pa.
'WE NEED BIGGER ACC CUTS'
We are getting ACC tax cuts, but they are not large enough for the Labour Party. The Government is overcharging Kiwi businesses by $350 million a year in ACC levies - a move that costs 700 jobs and takes $70 million out of the economy, Labour Leader Andrew Little says.
ELECTION IN NORTHLAND
Pork barrel bidding has started in Northland. National Party Northland candidate Mark Osborne today announced National will commit to replacing 10 single lane bridges on Northland's Twin Coast Highway over the next six years.
FIBRE AND WIRELESS TAKING OFF
Fibre connections in New Zealand have tripled in the last year, putting us first of all 34 countries in the OECD. The latest OECD Broadband Portal penetration statistics show New Zealand is now number one among developed countries for annual growth of fibre connections from June 2013 to June 2014 - although it helps to start from a low base. The average annual growth of fibre connections in the OECD was 12% - for NZ it was 272%. New Zealand is now also in the top ten in the OECD for wireless broadband, up from 16th just four years ago.
TARGETING A BIG OPPORTUNITY
Now that the politicians are firmly focused on getting more houses built, the banks are slipping in behind them, salivating at the prospects of thousands of new builds in Auckland and Christchurch. BNZ today announced new dedicated teams to go after this expected business surge. That wasn't exactly their announcement; what they actually said is that they have established new BNZ Housing Under Construction Hubs, "to provide specialised services and expert advice to customers building new homes".
WHOLESALE RATES JUMP
Wooah! Our local wholesale markets have followed Wall Street in pricing in the expected Fed funds rate rise risk - well, at least half of it so far. NZ swap rates are up +4 to +8 bps today in a steepening curve. (Wall Street added +13 bps to the UST 10yr benchmark.) The 90 day bank bill rate was unchanged at 3.63%.
NZ DOLLAR FALLS
Check our real-time charts here. The kiwi dollar has fallen sharply. It is now at 73.5 USc, down to 95.5 AUc, and the TWI is at 78.4.
You can now see an animation of this chart. Click on it, or click here.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.