Here are the key things you need to know before you leave work today.
UDC AND SBS RAISED TERM DEPOSIT RATES TODAY
Among their changes, both SBS and UDC are targeting 4.2% for 6 months, and UDC is now offering 4.45% for 1 year, SBS offering a market leading 4.6%.
FOOD PRICES ESSENTIALLY UNCHANGED
There is no food price pressure. Food prices rose 0.6% in April, and were up only 1.5% on a year earlier, Statistics New Zealand said today. The monthly rise follows a 0.3% fall in March, and a 1.0% fall in February.
SOUTH ISLAND GAINS COWS, LOSES SHEEP
The number of dairy cattle in the South Island has been steadily increasing in recent years, with an additional 1.3 million dairy cattle since 2003. In the same period, the number of sheep has declined in the South Island by more than 5.3 million. "The additional dairy cows in the South Island produce enough milk to fill around 415 milk tankers each day," StatsNZ said.
TRUCKOMETER CRUISING
We may well be past the peak of quarterly growth in the current upswing. However, annual growth will continue to accelerate, and the ANZ Truckometer continues to suggest the economy will keep cruising along into the middle of the year.
LOG EXPORT PRICES FALL SHARPLY
There are large stocks of logs in Chinese ports at present, and export prices for New Zealand logs fell sharply in May. However domestic demand is staying strong, according to PFOlsen.
HOUSING CONFIDENCE UP
The ASB Housing Confidence Survey finds most people still expecting house price rises and fewer now say it is a bad time to buy.
SBS CUTS KEY MORTGAGE RATES
SBS Bank cut its 3 and 5 year home loan rates today. They reduced their 3 year rate to where 4 other banks are positioned; however they chopped their 5 year rate to 6.79%, the lowest in the market for this fixed term.
BNZ UPS THE ANTE
Most main banks offer cash-backs for signing up a home loan. But BNZ has splashed out with a $3,000 cash offer, significantly higher than others. There are conditions, but not much different to their rivals.
WHOLESALE RATES MOVE UP AGAIN
Swap rates were up across the curve today by 3 bps. The 90 day bank bill rate was up another 1 bp to 3.41%.
OUR CURRENCY
The NZ dollar almost acted as a fixed rate today against all majors. The NZD is still at 86.2 USc, 92.2 AUc and the TWI is just below 80.1.
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