Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news wholesale markets are now pricing in a peak in the Official Cash Rate of under 4% in the wake of surprisingly weak employment figures yesterday.
Unemployment rose to 6.8% from 6% and employment fell 6,000, much worse than expectations.
Economists say markets may have overshot with expectations that the OCR may only rise another 100 basis points, but they are suggesting the Reserve Bank may pause its rate hiking when it next decides on September 16.
Economists are still picking a peak in the OCR around 5.5%, which would lift floating mortgage rates to around 8.5%.
Wholesale interest rates fell around 10 basis points after the jobs figures, which may allow some banks to cut their longer term fixed mortgage rates.
The New Zealand dollar fell to 72.8 USc from 73.5 USc.
The Dow fell on weak employment and retail sales figures.
Meanwhile, the government has announced it will put NZ$40 million in as an underwrite for the New Zealand Venture Investment Fund.
No chart with that title exists.
3 Comments
Muzza,
Here's the link to that story. Nice one.
http://www.time.com/time/magazine/article/0,9171,2007409,00.html
"In short, this has been an economic recovery that has felt like a continued recession. That's because for a significant portion of the population, it is a continued recession. Not only is the real unemployment rate (combining workers who have dropped out of the workforce and the headline numbers, together with workers classified as marginally attached to the workforce) in the midteens, but the amount of hours worked has declined, as have many incomes. "
"If you combine that with the scarcity of consumer credit and the uncertainty about the social safety net, tens of millions of Americans are facing a grave economic future. "
cheers
Bernard
Christov,
Unforunately one of the responses above your comment was abusive so I removed it and that took out everything below.
My apologies.
We're working hard on a registration system to reduce these issues.
We always welcome your comments and appreciate you not using the rude words or tone.
cheers
Bernard
Happy renter,
Here's the Stress Index we measure at Interest.co.nz of 'stress' words in listings on trademe.co.nz and realeestate.co.nz
http://www.interest.co.nz/charts/real-estate/housing-stress-index
cheers
Bernard
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