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
NZCU Baywide made a series of cuts, dropping its three month term deposit rate by 20 basis points to 2.80%, its nine month rate by five basis points to 3.45%, its 12 month rate by 10 basis points to 3.55%, and its 18 month rate by 10 basis points to 3.70%. It also dropped its online saver account interest rate by 25 basis points to 2.75%.
SYDNEY HOUSE PRICES FALL
Sydney house prices fell in the December quarter, the Australian Bureau of Statistics says. Its Residential Property Price Index (RPPI) for Sydney dropped 1.6%. Sydney established house prices fell 2.1% and attached dwellings prices fell 0.8%. Annually, however, Sydney residential property prices rose 13.9%. In other major Australian cities during the December quarter the RPPI rose in 1.6% in both Melbourne and Brisbane, was up 0.9% in Adelaide, gained 2.8% in Canberra, climbed 0.5% in Perth, and rose 2.5% in Hobart. Prices fell 1.8% in Darwin.
For the weighted average of the eight state capital cities, the RPPI rose 0.2% in the December quarter, and was up 8.7% year-on-year. The total value of Australia's 9.6 million residential dwellings increased A$31.6 billion to A$5.9 trillion, with the mean price of dwellings in Australia A$612,100.
S&P AFFIRMS NZ SOVEREIGN RATINGS
International credit ratings agency Standard & Poor's has affirmed its AA foreign currency long term rating and its AA+ local currency long term rating for New Zealand, retaining its stable outlook. S&P said the affirmations reflect NZ's monetary and fiscal policy flexibility, economic resilience and public policy stability. However those factors were moderated by what S&P described as New Zealand's very high external imbalances, its high household and agricultural sector debt, the risks to financial stability and the country's dependence on commodity income.
PATSY REDDY TO BE NEXT GOVERNOR GENERAL
Prime Minister John Key confirmed Patsy Reddy will be New Zealand's next Governor General succeeding Jerry Mateparae in September. Key described Reddy as a passionate New Zealander, a well-respected businesswoman and a staunch supporter of our creative sector, saying she is thoughtful, articulate and has a brilliant legal mind. Here's a biographical note on Reddy the government released.
GUY ENTHUSIASTIC ABOUT MONEY FOR MARLBOROUGH IRRIGATION SCHEME
Primary Industries Minister Nathan Guy says $895,000 of taxpayer funding for the Flaxbourne Community Irrigation Scheme in Marlborough will help the Marlborough District Council complete concept designs, finalise funding arrangements, and begin the design phase for a storage dam. Guy also says water from the project will most likely be used for wine grapes and arable crops, "showing again that irrigation is about much more than just dairy."
STATISTICS NZ'S 'DIGITAL FIRST' CENSUS MODEL
Statistics NZ says it's testing a "digital-first" census model on 22,000 households tonight, helping test new processes planned for the next census in 2018. A sample of households in Auckland, Waikato, Wellington, and Canterbury are testing new processes and online forms, which Statistics NZ says is so it can check that its updated systems and technology are easy to use and reliable. Households will be reminded about completing their forms over the next few weeks. Subsequently some households will be asked about their experiences to help Statistics NZ with census planning for 2018. Mobile, desktop, and tablet versions will be tested.
CAPITAL OUTFLOWS FROM CHINA REPORTEDLY SLOW
China's central bank governor Zhou Xiaochuan says capital outflows from China have eased significantly, Reuters reports. Zhou has, however, expressed concern about high level of corporate debt relative to gross domestic product despite the relative cushion offered by China's high savings rate. Zhou reportedly described the overall leverage rate of China's economy as being on the high side.
WHOLESALE RATES PUSH HIGHER
NZ swap rates had an upward bias today as global interest rates rose. We saw the mid part of the swap curve rise more than the short and long end. After reaching historic lows the two-year swap rate is currently up 2 basis points at 2.24%. Overall the swap curve has a steepening bias to it. There are definite signs the Fed has gone soft on inflation which is leading to rising long-term inflation expectations. If this trend continues we could see US 10-year Treasury yields trading back over 2%.
The 90 days bank bill rate was 1 basis point lower versus yesterday, at 2.33%.
NZ DOLLAR INCHES UP
The NZ dollar spent most of the morning session firmly on the back foot as the US dollar continued to claw back some of the ground lost post last week's FOMC statement and subsequent sell-off. However, the Kiwi rose from intra-day lows in afternoon trading rising against all the majors, although the rises are small. With a lack of economic data heading into the long weekend the NZ dollar has been slowly drifting lower and now sits in the mid US67 cent range after having tested the US69c level late last week. The Kiwi was last at US67.63c, AU89.30c, and the TWI was 71.05.
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1 Comments
Went onto the "shapeauckland" website run by Auckland council to give feedback on Aucklands direction , which is open for feedback until 24 March 2014
I typed in the words ROADS and then STREETS ............ and there was ............ NOTHING , NADA, NIL, ZILCH
In the TRANSPORT section there were stories about cycle lanes ( which cant be used in the wet months ) and talk of improving the horrendous bus service , but as long as the bus companies call the shots , nothing will change
What are these idiots doing all day in Auckland council ?
Its time for a radical re-think of the public bus system , we need to open it to the free market totally
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