Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the New Zealand dollar briefly touched a fresh post-float high of 83 USc overnight after Reserve Bank Governer Alan Bollard signalled yesterday the central bank would have to gradually lift interest rates by around 2% over the next two years to control inflation.
See our full report on the Reserve Bank's June quarter Monetary Policy Statement here.
The New Zealand dollar also rose to a post float high of 50.6 British pence and rose to a three year high of 71.1 on the Trade Weighted Index (TWI).
However, the currency remains well below the TWI record high of 76.6 hit in July 2007 when the Reserve Bank last intervened to push the currency lower.
See Alex Tarrant's article here on Bollard's approach to currency intervention.
Bollard commented on Thursday afternoon that the market's decision to push the currency sharply higher after the June Monetary Policy Statement (MPS) at 9am on Thursday morning was an over-reaction, but it didn't deter currency traders in London and New York from pushing it higher overnight. See all our MPS coverage here.
Elsewhere, the European Central Bank also held interest rate its official rate at 1.25% and signalled a hike in July, but it lowered slightly its expectations for inflation and said it saw inflation tracking back under 2%. The euro fell as markets trimmed their expectations for future ECB hikes. See more here at Reuters.
The oil price on NYMEX rose for a third day after OPEC's decision not to lift output and a US government forecast of almost two million barrels of new oil demand this year. See more here at Bloomberg.
The Dow rose, snapping a week-long losing streak. See more here at Reuters.
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Governor of the Reserve Bank of N.Z.
Hey kids ...Want to earn big money working in a redundant environment...?
Keep a few statistics and pratice your overworked look...?
Recieve scripted instruction on what to say and when to say it....?( with no fault clause)
Get to nob out with Ministers of the Crown at no expense spared...?
Be in a position to take advantage of all that volatility out there...?
Be directley involved in shaping N.Z. Real Estate......?
Too good to be true...?
This soon to be vacated post could be yours if you've got the right stuff.
Suitable applicants will be required to be aged between 80 and 90 years ....
Have had someone call them Doctor at some point in their career......
Remain awake and appear lucid during press conferences....
Be conversant with reading scripted material..while appearing to be the author of said material..(acting exp helpful not essential)
Enjoy a working atmosphere of zany out of control...all care and no responsibility on a rollercoaster economy ride..........
If this sounds like a position you would enjoy...forward a copy of your resume to The Minister of Finance C/O the Beehive for approval.
The succsessful applicant will recieve a Ludicrous Salary .. Absurd Expense Account....A Comfy Lazy Boy....A Commemorative Flying Kiwi Gold Coin....An Honorary Doctorate from the Soros Foundation.
Applications will close October 20th 2011.
Andy R....I understand the Jackson Hole covention may be moved to Disney Hong Kong next time as the current Chinese Governor Zhou Xiaochuan felt a little uncomfortable in unfamiliar surroundings......
Bolly is again rooming with the Chinese delegat as a foot masseuse ...come Batman...and further will lead the prayer of thanksgiving to China prior to the evening meal.
Loks like China is heading into troubled waters, and going to dragg us along for the ride.
Slug of Las Vegas land that sold for $30million in 2007 knocked down to $4.4million sale this month:
http://www.vegasinc.com/news/2011/jun/09/land-sold-30-million-fetches-4…
Cue: "Buy land, after all they are not making any more of it........"
In Christov's absence (and appalling jokes) I offer Unkle Specufestor for appraisal.
Agreed ... and yes...trouble is I couldn't get past the 'pratice' and 'recieve' (My mangled introductory sentence served to avenge me).
needling aside - Do the articles on the macrobusiness site create a feeling of deja vu?
e.g. the last three years of Bernard's site, but with a definite feeling that you've read it here first... Are we this far in advance of Australia? Just a trifle.....
http://www.radionz.co.nz/national/programmes/ninetonoon/audio/2490488/f…
- will open it in media player
OR
http://www.radionz.co.nz/national/programmes/ninetonoon/20110602 -for the full morning show and other options (mp3 etc)
Hope it helps...
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