Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
Kookmin Bank dropped some fixed rates.
TODAY'S DEPOSIT RATE CHANGES
There are no changes to report today.
JOB WORRIES RISE
Westpac's employment confidence index was noticeably lower in June than March. Westpac said New Zealanders have become less confident about the health of the labour market. The number of workers who reported a pay increase over the past year has fallen sharply. In addition, most workers expect that wage growth will remain weak over the coming year. Workers are also increasingly nervous about their employment prospects.
ONLY TALK?
The Reserve Bank may be trying to talk the NZD down, but it is not putting its money where its mouth is. Data released today shows they bought a tiny $11 mln in May, undoubtedly unrelated to any currency intervention activity. But in a way that is conceptually ironic; the RBNZ buying the NZD will tend to push the value up, and not down.
STARTUP SUPPORT
Equity crowd-funding raised a record $3.3 mln in June as two deals failed, two achieved minimum targets, and three got maximum support.
TAURANGA FAST TRACKING
Two more Special Housing Areas with the potential for 210 new homes in Tauranga were approved today. That adds to the seven announced in February and brings the combined capacity of homes arising from this Housing Accord with the Tauranga City Council to 1,900.
WHOLESALE RATES FALL
Swap rates fell sharply today in the wake of the Greek turmoil, down more at the long end than the short. One year is down -1 bp and 10 years are down -8 bps. The 90 day bank bill rate actually rose +3 bps today to 3.28%
NZ DOLLAR UNCHANGED
The NZ dollar actually rose on the day from where it started and is at 68.5 USc, and 89.5 AUc, and is up sharply vs the euro at 62.2 euro cents. The TWI is now at 72.5. Check our real-time charts here.
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8 Comments
The Reserve Bank may be trying to talk the NZD down, but it is not putting its money where its mouth is. Data released today shows they bought a tiny $11 mln in May, undoubtedly unrelated to any currency intervention activity. But in a way that is conceptually ironic; the RBNZ buying the NZD will tend to push the value up, and not down.
LOL - at best this represents miniscule collateral adjustments on the derivative book (currency swaps?)
"OK, this is real: Greek banks closed, capital controls imposed. Grexit isn’t a hard stretch from here — the much feared mother of all bank runs has already happened, which means that the cost-benefit analysis starting from here is much more favorable to euro exit than it ever was before."
http://krugman.blogs.nytimes.com/2015/06/28/grisis/?module=BlogPost-Tit…
Be careful what you wish for.
Our lens suggests that the very low interest rates that have prevailed for so long may not be “equilibrium” ones, which would be conducive to sustainable and balanced global expansion. Rather than just reflecting the current weakness, low rates may in part have contributed to it by fuelling costly financial booms and busts. The result is too much debt, too little growth and excessively low interest rates. In short, low rates beget lower rates.
From the BIS annual report released 6-28-2015 Read more
Puerto Rico on track to default
chinese dropping interest rates to try to prop up the share market, before it was property
Greece will default but may not leave the euro
too much world debt and asset bubbles which need correction.
maybe we are starting to see the fruits of the massive QE
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