Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
There are no changes to report today.
DEPOSIT RATE CHANGES
BNZ has added +10 bps to its nine month rate, taking it to 3.60%. At the same time, it reduced its 8 month special by -10 bps, nor to 3.50%. NZCU Baywide changed a children's account rate. And we will be adding NZCU Employees rates to our coverage.
ONLINE WITHOUT CREDIT CARDS
Paymark has extended its online EFTPOS service to the Cooperative Bank. This new service enables customers to shop online for goods and services, and pay using their own money from their own transactional account – rather than using a credit card. It applies for both internet banking and mobile app customers.
INFLATION RISK RECEDES
Chinese inflation is stable, coming it at +1.5% for June. That is the same level it was in May. Producer prices were up +5.5% on the same terms, also the same rate as for May. The concerns about importing inflation from China are receding.
NAME CHANGE
The Government's licensing and enforcement are, the Real Estate Agents Authorty is changing its name to the Real Estate Authority. Apparently some people thought it represented rel estate agents, rather than enforcing the law over agents and the name change is to avoid that misconception. The REAA will become the REA.
SELF-FULFILLING?
BNZ economists say recent media coverage of declining Auckland house prices could prove self-fulfilling. 'Prospect of reasonable correction in prices grows by the day,' they say.
'RAT TRADING'
China is making a serious attempt to clean up rampant front-running trading by some fund managers. This is a scam where traders at a financial institution build a position with their own money, and then use investors’ funds to elevate the share price. It is called 'rat trading' in China. Since 2014, more than NZ$15 bln in such scams have been uncovered by their regulator.
MOST VULNERABLE
Half of the top 20 suburbs in Australia that are under mortgage stress are in Victoria, which is a "serious problem", according to a new report by the Grattan Institute. Almost one quarter of all houses in Wollert, less than 30 kms north of Melbourne's CBD have household incomes that spend 30% or more on loan repayments. It is an area hard hit by the closure of their vehicle manufacturing industry, and is the most stressed on the Grattan review.
GOTCHA
Here's a cautionary tale from Canada. Do you use your mobile phone with data? Apparently we are addicted to the convenience ... and the companies supplying the service know it. In Canada, two majors just hiked fees for going over your data maximum commitment. Getting you on relatively more expensive "unlimited data' plans is their goal. Happening here?
WHOLESALE RATES STABLE
Wholesale swap rates are virtually unchanged today, with only a +1 bp blip to the 10 year. The 90 day bank bill rate is also unchanged at 1.98%.
NZ DOLLAR UNCHANGED
The Kiwi dollar is essentially unchanged today at 72.7 USc. On the cross rates we are a little lower against the Aussie, trading now at 95.6 AUc and unchanged against the euro at 63.8 euro cents. That leaves the TWI-5 at 76.8. Bitcoin is lower today, down -2.6%% from this time Friday to US$2,526.
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