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A review of things you need to know before you go home on Friday; mortgage rate cuts, TD cuts too, we mainly owe Australia, confidence sky-high, NZ dollar still falling slowly

A review of things you need to know before you go home on Friday; mortgage rate cuts, TD cuts too, we mainly owe Australia, confidence sky-high, NZ dollar still falling slowly

Here are the key things you need to know before you leave work today and enjoy a new Mondayised long weekend.

TODAY'S MORTGAGE RATE CHANGES
ASB cut its 3 year rate to 5.39% which mirrors what Kiwibank did earlier in the week. At the same time ASB removed its 18 month and 4 year 'specials'. Overall, this has the effect of raising their carded mortgage rates. Similar changes were announced for BankDirect and by Sovereign. AMP Home Loans also cut their one year rate to 5.49% and their three year rate to 5.39%.

TODAY'S DEPOSIT RATE CHANGES
ASB also cut its term deposit rates by between -5 and -10 bps.

WHAT BANKS OWE
The Bank for International Settlements (the central banker's bank) released international banking statistics as at the end of December 2014. That showed that New Zealand banks owed US$314.3 bln to creditors outside New Zealand (NZ$405 bln) and US$283 bln (NZ$364 bln) was owed to Aussies. That is more than 90%. Remember, nominal GDP to December 2014 was NZ$235 bln. The data also showed that claims on China contracted by about US$51 billion during the last quarter of 2014, bringing down their year-on-year growth rate to 21% from 40% at end-September 2014.

'A GREAT TIME TO BUY'
ANZ reported the Roy Morgan consumer confidence index was a high 128.8 in April. They said there is still considerable horsepower across the economy’s engines, going by these  consumer sentiment readings. Stripping out seasonal noise, the index showed a 1 point lift. That is trivial, but it’s really about holding onto the high levels of confidence New Zealand consumers have come to settle at.

WHY ARE WE SO HAPPY?
Read both the previous two items together. It turns out Kiwis are happier than Aussies. (So its better to be a debtor?)

FINALLY, A REJECTION
The Commerce Commission has declined an application from Reckitt Benckiser Group, owners of Durex, to purchase Johnson & Johnson’s K-Y brand and product assets. A key issue was they thought the supermarket chains would not be interested in keeping the product price competitive if the takeover was approved.

WHOLESALE RATES
Wholesale swap rates slipped another -2 or -3 bps and the 1-5 curve is still pretty flat at just +7 bps. The 90 day bank bill rate was up +1 bp to 3.62%.

NZ DOLLAR MIXED
The New Zealand dollar is still falling. As of late this afternoon it is at 75.5 USc, 97.2 AUc, 69.9 euro cents, and the TWI is at 80.2. But in the longer term perspective these falls are still minor. Check our real-time charts here.

You can now see an animation of this chart. Click on it, or click here.

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Here's a statement from Civil Defence Minister Nikki Kaye on today's earthquake;

GeoNet recorded a 6.2 earthquake located 35km south-east of St Arnaud, at a depth of 52km, just after 3.30pm today.

“The Ministry of Civil Defence and Emergency Management (MCDEM) is making contact with a number of local authorities, as the earthquake was felt in various parts of New Zealand, to determine if there have been any injuries or damage,” says Civil Defence Minister Nikki Kaye.

“At this stage, I am advised that MCDEM hasn’t received any reports of major injuries or damage.

“I’m also advised that there are difficulties making contact with some areas, because of communication network issues.

“MCDEM officials will continue to work to get information from local authorities and other agencies.

“We will advise if there is any significant change to the situation.

“There are already aftershocks occurring, so it’s important that people know the right actions to take during an earthquake, which is to drop, cover and hold.

“If you are driving, pull over to a clear place, stop and stay there with your seatbelt fastened until the shaking stops.  Once the shaking stops, proceed with caution and avoid bridges or ramps that might have been damaged.”

For more information on what to do before, during and after an earthquake, visit www.getthru.govt.nz/disasters/earthquake

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