Here are the key things you need to know before you leave work today.
ANZ RAISED HOME LOAN RATES TODAY
ANZ hiked almost all its fixed mortgage rates today, going out further than anyone else (and no doubt hoping others will follow). These rises were about 20 bps and front-foot the rising wholesale money markets. Interesting as well is that Westpac has made no moves at all, almost one week after the OCR changes.
MORTGAGE APPROVALS STRONG
After a long series of weeks revealing weak approval levels, last week (the week when the OCR was changed) jumped noticeably higher. It was the biggest week of 2014 so far and also comes as a number of big banks have signaled they are ready to welcome back first home buyers because they have capacity under the new RBNZ 'speed limits'. Average loan values are also trending higher.
TERM DEPOSIT 'RISES'
The OCR rises should bring rises in term deposits and there have been a few. Disappointingly, a number of the rises have been by banks who were not especially competitive in the first place; we have yet to see 'market leading' increases. Hopefully they will come. We have see changes today from TSB with an opportunistic +0.25% on their 2 year TD, and BNZ added 20 bps to their 9 month and 0.10% to their 18 month TDs. To their credit, ANZ has followed up their Claytons 0.25% rise to their Serious Saver (it wasn't competitive in the first place), with across the board 0.20% and 0.25% increases to terms of 1 to 5 months and 18 months to five years.
TRANSPARENT LOCAL AUTHORITY BENCHMARKS
The government today announced that all councils will need to produce long term data charted in a standardised way, in the hope that ratepayers will understand and can compare local body performance.
TECH ECHO
The government also agreed that landline phone subscribers can opt out of getting a hard copy of the WhitePages. That will save embattled Yellow a few bucks (but mean less income for the sports clubs that deliver them).
BALANCE OF PAYMENTS IMPROVES
The Q4 2013 current account deficit came in at 3.4% of GDP, about where every economist was expecting. It usually improves in Q4, which is why there was no big surprise. Tomorrow we get Q4 GDP and no surprise is expected then either. Certainly todays data caused zero ripples in the already sky-high exchange rate.
NZ-CHINA DAIRY CO-OPERATION
Fonterra today announced the launch of the China-New Zealand Dairy Exchange Centre in Beijing. The Centre is a joint initiative between Fonterra and China’s National Dairy Industry and Technology System "to support the sustainable development of the dairy industry in both countries".
WHOLESALE RATES
Swap rates slipped across the board by 2 bps today for all terms of 2 years and longer, consolidating recent gains. The 90 day bank bill rates held at 3.10%.
OUR CURRENCY
The NZD is zoomed higher today and is at US86.2c and A94.3c and the TWI is at 80.3.
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