Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There were no changes today.
TODAY'S DEPOSIT RATE CHANGES
ASB extended the trend of banks dropping their term deposit rate offers. They dropped their rates -10 bps for terms 1 to 2 years, and down -30 bps for 3 to five years. We are expecting another major to reduce term deposit rates tomorrow.
SAGGING EMPLOYMENT CONFIDENCE
New Zealanders became more pessimistic about the state of the labour market in December according to the Westpac Employment Confidence index. Falls in confidence were widespread and mostly reflected concerns about the outlook for jobs growth, rather than current conditions. A SEEK survey also reported 'widespread discontent'. Westpac thinks people are believing the bearish talk at the end of 2014 and with a positive outlook for domestic demand in 2015, we will see the labour market improve over the coming year.
A TALE OF TWO ECONOMIES
Vehicle sales fell -2% in 2014 compared to the year previously - in Australia. Passenger car sales were down -6%. That compares with record highs in New Zealand.
MEDIAN MULTIPLES
Some media got excited today about housing "median multiples' based on the 2015 release of the Demographia report. We publish similar data monthly, with the obvious data flaws removed from the Demographia set (Auckland incomes did not go down in 2014!). However, the underlying point of the measure remains robust - we are paying way too much for houses especially in Auckland. If you want to review incomes-to-house-price data for almost all New Zealand urban centers, check out this page.
WHOLESALE RATES
After last week's Swiss-initiated plunge, benchmark Government bond rates rose marginally. NZ swap rates followed, rising +3 or +4 bps today. But the curves remained very flat. The 1-5 is still only +10 bps and the 2-10 is only +8 bps. The 90 day bank bill rate is up to 3.68%.
NZ DOLLAR SOFTER
Check our real-time charts here. The NZ dollar held at relatively high levels today. It is at 77.9 USc, at 94.7 AUc, and the TWI is now at 80.
You can now see an animation of this chart. Click on it, or click here.
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