Here are the key things you need to know before you leave work today.
LABOUR PROPOSES MORE RBNZ TOOLS
In a major announcement, the Labour Party has proposed a new Variable Savings Rate tool for the Reserve Bank and extra an objective in Reserve Bank Act to target current account surplus. They confirmed they want KiwiSaver to be universal taking up to 9% of earnings.
SPEED LIMIT EFFECTIVE
The share of high LVR lending, after exemptions, fell in March to 3.6% of all home loan lending commitments, according to RBNZ data released today. Although similar, this is not quite the same as the RBNZ's 'speed limit' standard, but it does show banks now have plenty of room to make high LVR loans now. The RBNZ said all banks are in compliance.
ANOTHER BIG TRADE SURPLUS
Monthly exports to $5 bln for the first time ever. Our trade surplus rose to $920 mln, a record for a March month.
KIWIBANK RAISES VARIABLE MORTGAGE RATES
The state-owned bank is the third bank to raise its floating home loan rate following Thursday's OCR hike. It didn't change any term deposit rates however. AMP and NZ Home Loans followed suit.
ONLINE RETAIL GROWING BUT MOMENTUM SLOWING
The latest BNZ online survey shows 9% growth from a year ago, but this is slower than last month. Purchases at domestic sites were 5% higher, purchases at overseas sites were 15% higher. Still, 60% of online sales are made with domestic merchants.
CRAIGS IP RAISES CASH MANAGEMENT TRUST RATES
These broker CM interest rates have gone up by between 15 and 20 bps today.
BEEF AND LAMB PRICES RISE
There has been a jump in both beef and lamb prices this week, especially in the North Island. That ends an 8 week soft period. Wool prices firmed noticeably also.
BIG IRRIGATION PROJECT STARTS
Construction has officially started on the Central Plains Water irrigation scheme in Canterbury. In addition to extending irrigated Canterbury land, it will also replace most groundwater bore use in the region enabling key local rivers to flow fuller again.
WHOLESALE RATES TAKE A REST
Swap rates slipped 1 bp today for 1, 2 and 3 years and rose 1 bps for 7 and 10 years, so very little movement today. The 90 day bank bill rate rose one bp today back to 3.30%.
OUR CURRENCY
The NZ dollar went sideways today with virtually no reaction to the big trade surplus. The NZD is now at 85.3 USc and 92.3 AUc. The TWI is at 79.5.
3 Comments
Is it just me...or do we have our priorities a tad askew, are we nuts or what??.
1.
What happened today, was that 100Million was earmarked on "Community Projects" recently in Christchurch. They were "feel good" projects.
What happened also today, was that Christchurch was flooded again, because 50Million was not spent wisely, but Liane is investigating a "Task Force" to ponder on a two year contract to actually ameliate the flood risk, that occurs each time it rains. It may cost 50million, but who knows.
(Winter is coming, I think it might rain again as it is already twice usual amount)
I suggest these concerned Citizens should all get their priorities right.
Maybe get together, maybe start digging instead of re-trenching and idle chatter and back slapping.
Then some other concerned people, may 'Feel Good" and not wet.
I did say the same thing last week about 'Flooding priorities' by so-called public servants, but it fell on deaf ears..... maybe it is worth repeating.
They might be awake.
Is it just me....or is this nuts...yet again and again.
2.
What happened today was the Mongrel Mob was lauded with photos and elevation above their mana, a joy to behold, an exhibition in culture.
I am sure someone will make a quid and benefit from the Association. (They do).
It did get a lot of interest.
That is all, except for all their victims, naturally, some of whom are deceased and cannot speak for themselves.
So I will.
What ever next.
3. What happened today was that Russia was given more sanctions overall, by the West.
What happened today was that Putin was not personally hit up for his ill-gotten billions, as that would never do, though he is the overall "Head of State Theft and Corruption for Russia", it might set a precedent for the West and that would never do.
Ironic.
I cannot wait for Wednesday.
I think the nutters have taken over the World.
Money talks.
It just does not make a lot of sense.??!!
Also what happened today is that NZ now realises (contrary to the misinformation from bank economists) that Christchurch is more likely to drain the economy (excuse pun) than sustain a long term boost to the economy.
Three or more years after the major quake and the poor city centre is still decimated, roads are hazardous, 1000s of homes are redzoned or flooded or in limbo.
NZ needs a Winston Churchill (not Peters) to sort this out.
In the meantime, usong Chch as an excuse partially to raise interest rates to cool the economy is crazy - nz cant afford the ongoing cost of rebuilding Christchurch
. Maybe time to rebuild somewhere else?
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