Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news that retail interest rates are now on the move after the Reserve Bank's move last Thursday.
The RBNZ raised the Official Cash Rate by 25 basis points to 3%, but said the likely pace and size of future rises would be more moderate than previously forecast because of a weaker economic outlook.
Longer term wholesale interest rates fell around 20 basis points on Thursday and Friday on the comments about more moderate future hikes
Last night ASB and its subsidiary Sovereign moved their mortgage rates. They hiked their floating rates by 25 basis points to 6.25% and 6.35% respectively, but cut their 18 month mortgage rates by 15 basis points to 6.6% and 6.75% respectively. See more on the moves here.
Meanwhile, Fonterra announced late yesterday it would review its milk payout forecast for the 2010/11 season for a possible reduction of at least 30 c/kg from its current NZ$7/kg after milk powder prices dropped 28% in New Zealand dollar terms in the last three months. See more on the payout here.
Across the Tasman, Australia reported a record monthly trade surplus for June of A$3.8 billion. Australian mining exports rose 11% for the month as demand from China continues to keep prices high and shipments heavy. Australian exports have risen 42% in the last 3 months and will no doubt keep wages growth strong. New Zealand migration to Australia has picked up in recent months.
Meanwhile, the Dow rose slightly on better than expected private sector jobs and services sector news, but all eyes are on key non-farm payrolls figures due on Friday night.
The New Zealand dollar was steady around 73.4 USc.
See our interactive chart on wholesale interest rates (swap rates) below and here.
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