Here are the key things you need to know before you leave work today.
TSB AND CO-OP BANK LIFT TERM DEPOSIT RATES
There was a range of term deposit rate increases from TSB, while Co-operative Bank introduced a 4-month 'special'. Credit Union Baywide also upped both its TD and mortgage rates.
THE IMF WANTS NZ TO REPAY DEBT FIRST
IMF calls on the Government and Opposition to keep fiscal policy tight to help the RBNZ withdraw its stimulus from an economy growing above trend. It agrees the NZ$ is between 5 and 15% over-valued. It also says house prices are at elevated and risky levels.
AUCKLAND'S COMMUTER RAIL GOES ELECTRIC
Today was switch-on day for the Auckland rail system at Britomart, with every politician of all stripes claiming a 'win'. So far $1.7 billion has been 'invested. Currently there are 10 million rail trips annually on the system and after electrification this is expected to rise. 57 new electric trains will be progressively rolled out later in this upgrade.
RBNZ SURPRISED
The central bank says it was surprised how fast and effective its LVR policy has been.
FONTERRA TO GUARANTEE MILK PRICE
After a 'successful trial' Fonterra is offering its farmer suppliers nationwide the opportunity to sign up for a guaranteed price, rather than take the 'forecasts and final' price setting also available. A Guaranteed Milk Price (GMP) will be offered on 60 million kgMS in two tranches.
RBA ABOUT TO REVIEW ITS RATE
At 4:30 pm the RBA will advise whether it is changing its Cash Rate Target (their OCR). No-one expects any change because they have signaled that a longer stable period at current rates is likely their best policy. However they are facing high house prices and higher inflation so the interest will be in the tone of their review.
WHOLESALE RATES
Swap rates rose by another 1 bps across the curve, except the one year term rose 2 bps. The 90 day bank bill rates were up another 3 bps again today and now at 3.15%. The next OCR review is April 24 and it is widely expected that it will rise another 0.25%. This is driving the 90 day bank bill rate up.
OUR CURRENCY
The NZ dollar has flat lined all day ahead of the RBA decision at 4:30pm. It is now up to 86.7 USc, 93.6 AUc, and the TWI is now touching 80.9.
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