90 seconds at 9 am with BNZ: NZ$ and wholesale rates fall after RBNZ's dovish statement; Moody's warning on US AAA

Bernard Hickey details the key news overnight in association with BNZ, including reaction to the Reserve Bank of New Zealand's dovish statement yesterday with its increase in the Official Cash Rate.

The New Zealand dollar fell more than half a cent yesterday and kept those losses overnight to be around 72.3 USc in early trade.

This followed Alan Bollard's comments that the New Zealand dollar's rise was inconsistent with soft commodity prices recently. Bollard also commented that future OCR rate hikes would be slower and more moderate than previously forecast.

Wholesale interest rates fell around 10 basis points on the more moderate outlook for interest rates. See our interactive swaps rate charts here and below.

This raises the interesting prospect that the banks could increase their floating mortgage rates and trim their fixed mortgage rates, as they did after the first OCR hike on June 10.

Meanwhile, Moody's said overnight that America's AAA credit rating may come under scrutiny unless the US government can come up with a credible plan to reduce its budget deficit.

The US dollar weakened after the comment and demand for a big US Treasury bond auction overnight was relatively weak. The Dow fell also.

Meanwhile, the NBR Rich List was released this morning, the NZHerald reported. Allan Hubbard and Mark Hotchin have been delisted their financial calamities of the last year, while Eric Watson remains because he has other assets in other places..

Serial IT entreprenuer and Xero founder Rod Drury enters the Rich List.

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