Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
On the eve of the RBNZ OCR review, all is quiet. Might be different tomorrow. We expect most banks will try to be 'first' on the day with rate cuts to respond to BNZ and ASB while everyone's attention has been grabbed by the RBNZ.
TODAY'S DEPOSIT RATE CHANGES
No changes to report today. Under the cover of the mortgage rate cuts tomorrow, more term deposit rate cuts may also be announced. We'll see, soon enough.
INVESTING IN HOUSES
New housing loan approvals continue at a fast clip. Last week, 6,291 new loans were approved worth $1.387 bln. Volumes are +11% on the same period a year ago, values are up +29%.
INVESTING IN LOSSES
In the past year to August 31, 142,700 used imported cars were first registered. This is on top of the 93,600 new cars. The total 236,300 is the largest annual level ever, now exceeding the 'boom' 2004 year. Car imports are a bit of a lagging indicator, but it is clear we have not been holding back. I don't quite get why we would pile into an 'asset' that always loses value quickly. But there it is.
A DIGITAL KASHIN
ASB’s iconic Kashin moneybox has been given a digital makeover with the launch of a cashless interactive moneybox, designed to get Kiwi kids excited about earning and saving pocket money and to understand the value of money as we move towards a cashless society.
DOWN IN THE MOUTH
Consumer sentiment in Australia fell +5.6% in the latest quarter according to the Westpac/Melbourne Institute survey. That is quite a contrast to the +7.8% gain in the previous quarterly survey.
WHOLESALE RATES RISE
Swap rates were higher yet again today, up +3 or +4 bps across all terms. The 90 day bank bill rate went down by -1 bps again to 2.86%. These changes came after a strong performance on Wall Street earlier today
NZ DOLLAR RISES
The Kiwi dollar came back into favour strongly today, rising almost 100 bps. The NZD is now at 63.9 USc, at 90.6 AUc and 57.2 euro cents. The TWI-5 is now at 68.6. Check our real-time charts here.
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1 Comments
Consumer sentiment in Australia fell +5.6% in the latest quarter according to the Westpac/Melbourne Institute survey. That is quite a contrast to the +7.8% gain in the previous quarterly survey.
Reserve Bank of Australia Deputy Governor Philip Lowe said business investment is the “missing ingredient” in the economy’s adjustment from mining, while adding that the nation needs to get used to “something a little less extraordinary” in China’s growth.
“A material lift in non-mining business investment still seems to be some way away,” Lowe said in the text of a speech in Melbourne Wednesday, again calling for renewed economic reform. “There is no magic bullet here, but surely the investment climate would be improved through a strong focus by both business and government on innovation, productivity, human capital and entrepreneurship.”
This bloke is having a laugh. All the spare capital is doubled down in the Nikkei 225. Didn't he hear the whoosh of the AUD/JPY (3 mth button) crash as the punter's exited Sydney?
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