Here are the key things you need to know before you leave work today:
MORTGAGE RATE CHANGES
There were no changes today.
TERM DEPOSIT RATE CHANGES
The NZ Firefighter Credit Union 1 month was up 0.40% to 1.50%, with the 9 month down to 3.70% to 3.60%. FE Investment 12-month term deposit rate increased from 5.00% to 5.18%.
FED FUNDS RATE UNCHANGED
The US Federal Open Market Committee left its funds rate unchanged at 1.25%-1.50% this morning (NZ time). "The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate," the statement said.
NO MOVEMENT IN CHINESE PMI MANUFACTURING
The seasonally adjusted Purchasing Managers’ Index (PMI) – a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy – was unchanged from December’s reading of 51.5 in January, to signal a further modest improvement in overall operating conditions. The health of the sector has now strengthened in each of the past eight months, while the pace of improvement was slightly stronger than the long-run trend.
ANZ JOB ADS UP 3.1%
ANZ job ads rose 3.1% m/m in January (seasonally adjusted), its highest monthly lift in three years. Annual growth eased to 5.9%. Job ads have flattened off at high levels but are showing tentative signs of a second wind. ANZ expects wage growth to pick up modestly this year, reflecting both a tight labour market and changes in government policy. However, there are plenty of questions over the magnitude and timing.
BENCHMARK INTEREST RATES
The UST 10 year is at 2.73%, up 2 bps from this time yesterday. The Aussie 10 yr is at 2.82%, up 2 bps on yesterday. The Chinses 10 yr is at 3.95%, down 1 bps and the Kiwi 10 ye bond is 2.95, just a 2 bps fall from yesterday. The 90 day bank bill rate is unchanged.
BITCOIN BACK UP ABOVE $10K
Bitcoin is now at US$10,088 a gain of US$198in the past 24 hours, up from its lowest level since late November 2017, recorded yesterday. 737
NZ DOLLAR RISES
The NZ dollar unchanged from the same time yesterday, sitting at 73.7 USc - it reached a daily high of just over 74 USc at midday. The Kiwi is up a whisker against the Aussie too, at 91.4 AUc, up 0.1 AUc from same time yesterday. This puts the TWI-5 up at 74.97.
Daily exchange rates
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2 Comments
The US Federal Open Market Committee left its funds rate unchanged at 1.25%-1.50% this morning (NZ time). "The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate," the statement said.
Indeed!!
You have to go back four years for some honesty. The FOMC in January 2014 could be more forthright simply because the committee’s members believed they wouldn’t ever have to explain themselves. They voted to taper QE at the end of 2013 with the expectation that the economy would perform as their econometric models laid out. Thus, they could say:
"The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term."
Inflation hasn’t over the intervening four years, but that hasn’t stopped them from continually referencing the same expectations year after year. Read more
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