Here are the key things you need to know before you leave work today.
COURT CASE EXPANDS
The group already suing ANZ and Kiwibank on behalf of some of their customers over so-called exception fees has extended their representative legal action to include ASB, BNZ and Westpac.
GROCERY PRICES FALL
Grocery prices fell again this week in both New Zealand and Australia in our monitoring of a 'healthy food' shopping list. In Australia it was meat prices that were the main drivers, in New Zealand a range of 'specials' caused the shifts.
GOVT TO BUY BACK DEBT
The Government has announced it is ready to buy back some of its $76 billion debt. It has a program to buy $3 billion over the next year, and today announced a specific plan to buy back $500 million tomorrow in a reverse auction. The 15 April 2015 nominal bond is being targeted.
MORTGAGE RATES INCH HIGHER
Kiwibank mortgage rates have been increased for all fixed terms from 6 months to 2 years. The rises were fairly small however, mainly +4 bps and bringing Kiwibanks main rate offers into line with the big four Aussie-owned banks.
GDP GROWING
The ANZ Truckometer leading indicator series for GDP rose 1.7% in January following a lesser rise in December. The data continues to flag momentum in growth across the country, says ANZ. Their 'preliminary pick' for GDP growth in the first quarter of 2014 is +0.9% q-on-q, an above average rate.
POPULATION GROWING
The latest population estimates were released today. These should be pretty accurate again given we had a Census just a few months ago. As at December 2013 there were 4,504,600 people "ordinarily resident" in New Zealand. That is 1.16% or 51,700 more than a year ago. (Invercargill has a population of 53,000.) And there are 66,300 more females in New Zealand than males. The rate of increase is the highest since 2009 but less than half what it was in the boom times in the 1940s, 1950s and 1960s.
WHOLESALE RATES STABLE
Swap rates and 90 day bank bill rates are unchanged today, but those 90 day bank bills are at 2.91% its highest level in years.
OUR CURRENCY RISES
The NZD is ending near its high for the day vs the USD, and near its low vs the AUD.
AUSSIE BUSINESS CONFIDENCE UP
Across the ditch, the closely watched NAB business confidence survey is out for January and shows an encouraging improvement. Business conditions held on to previous gains, and posted a rotation toward a more constructive hiring-led recovery. Markets will be pleased.
NEW AUCKLAND HOUSING AFFORABILITY RESOURCE
For readers convenience we have summarised all the various affordability measures we have for Auckland on one summary page. Here is a preview.
RENTS HIGHER FOR 3BR HOUSES
The latest rental data from the Tenancy Bond Service out today has tipped the national median rent for a 3 bedroom house up $10 in January to $360 per week, its highest level ever. This has occurred because of a confluence of rising rents especially in Auckland and Christchurch, although neither of these individually were a record.
3 Comments
Environmental dogma meets troughing pollies.
"Why did the Fed ignore or overlook a rapidly worsening economy for most of 2008 — even for three full weeks after the Lehman debacle? Because the Fed was focused like a laser on rapidly rising commodities prices, fearing that inflation expectations were about to become unanchored – even as inflation expectations were collapsing in the summer of 2008. But now, thanks to Wright et al., we know that rising commodities prices had nothing to do with monetary policy, but were caused by an ethanol mandate that enjoyed the bipartisan support of the Bush administration, Congressional Democrats and Congressional Republicans."
http://uneasymoney.com/2014/02/07/now-we-know-ethanol-caused-the-2008-f…
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