Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that China's decision not to tighten monetary policy with a rate hike over the weekend has boosted global stocks and lifted both the New Zealand and Australian dollars.
Economists had expected Chinese authorities to tighten monetary policy over the weekend to cool the economy and an inflationary surge.
But the decision not to hike rates -- as least for now -- has given those economies that benefit from strong Chinese growth a reprieve. China is Australia's largest buyer of exports and New Zealand's third largest buyer.
The Australian dollar rose to 99.8 USc and the New Zealand dollar rose to 75.7 USc, although it remains relatively weak vs the Australian dollar, which is helping to dampen any rise in the Trade Weighted Index. The Dow rose more than 40 points in late trade. See our interactive chart below.
Meanwhile, BNZ economists have warned that the September storms and early signs of a drought could reduce agricultural output by more than NZ$1 billion. See the full research note here.
Later today the government is expected to post a deficit approaching NZ$15 billion when it releases its half year fiscal and economic update at 1pm as slower economic growth drags on GST revenues. See more from John Key's comments last night.
The outlook sets up a tough election year budget for the government as it strives to avoid a credit rating downgrade from Standard and Poor's.
Meanwhile the new Auckland Super City has agreed the first rate increase under the amalgamated city is likely to start at 4.9%, almost double the underlying inflation rate.
New Mayor Len Brown told RadioNZ this was well below the initial 8.9% suggested by council officials as it becomes clear the Super City will not save as much money as expected.
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