Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
Today it was the turn of the smaller institutions to announce their floating rate increases. AMP Home Loans, Kookmin Bank and RESIMAC all added +25% to their floating rate offers.
TODAY'S DEPOSIT RATE CHANGES
On the saving side, the Nelson Building Society raised all its term deposit rates for terms up to 12 months by +10 to +25 bps.
HOUSING CONSENTS GROW
Today's release of June building consent data for housing was a bit of a disappointment except in key zones in the South Island. Across the regions, the largest annual gains in building consents was seen in Christchurch (+68%), Waikato (+57%) and Otago (+39%). Manawatu/Wanganui, Hawkes Bay, Nelson and West Coast all experienced declines in building consents over the past year of between -36% and -38%. Missing in action is Auckland.
MEANWHILE IN THE REAL ECONOMY ...
Non-residential building consents recorded another bumper result in June, with the monthly total of $490 mln the second-highest value of consents on record (in both actual and seasonally adjusted terms).
HANGING IN THERE
Housing loan approval data for last week was a slight improvement over the week before, but nothing spectacular either way. Approval volumes are down -14.8% on a similar period last year while values are down -9.4%. Those are reduced declines however, so there is a faint positive suggestion in this data.
HANDS OFF IN JUNE
There is speculation about whether the RBNZ has or is about to intervene in foreign currency markets to 'encourage' a fall in the NZD. Data out today for June shows that they kept their powder dry last month.
DOUBLE-TEAMING
The Serious Fraud Office and the Financial markets Authority signaled they will be working closer together today.
Data collected by the New Zealand Transport Agency on State Highway usage for the first six months of 2014 shows a +3.8% increase compared with the same period a year before. In Northland and Auckland the rise was +3.6%, +4.2% in the Waikato and BOP, and a +5.4% increase in Canterbury. Wellington, Nelson, Marlborough was the laggard at +1.8% growth. This sort of data is a good proxy for the yet-to-be released Q2 data due out on September 18, 2014.
WHOLESALE RATES
Swap rates slipped by -1 bps across all terms today, reflecting Wall Street overnight. The 90 day bank bill rate was up +1 bps today at 3.70%.
OUR CURRENCY
The NZ dollar has run through pretty much unchanged again today after the overnight fall. The NZD is at 85.0 USc, is at 90.7 AUc and the TWI is at 79.5. The 'Fonterra reaction' seems to have ended; it was all late yesterday and overnight.
You can now see an animation of this chart. Click on it, or click here.
10 Comments
Not to depress y'all but MoM reckons the US is circling the bowl...
Why would they fear deflation...??? nad why rightly so..??
They have all the weapons of mass destruction.... in regards to Money printing...fighting deflation... BUT... if inflation should become an issue they are between a rock and a hard place...
Deflationists have been holding their breath for 6 yrs now....
Oil prices have not collapsed
houses prices have not collapsed..
All those people who might have invested based on Nicole Foss predictions ( I think u have quoted her).... are getting their shirts ripped off their backs...
Once USA banks get their balance sheets sorted out...... and start lending and people start borrowing again..... what will the FED do..??
All madness... I know.... Why could the world not have sorted out its' shit back in 2008...????
Why the madness of making it worse.... because they can... we live for today
just my view of course.
Deflation stalks the Eurozone
agree with u there...
Had a friend just come back from Greece.
He told me that he spoke to a doctor...maybe surgeon... Was told that they have taken a 40% pay cut....
Just like the 1930s' great depression..
BUT... I hear the ECB is cranking up presses....... but yes.... deflation stalks....
Because the impact of deflation and the depression it will cause is far worse than the effect of some inflation. fear it because once in it its very difficult to get out of. Look at all the Qeing for 6 years and the best we can see is inflation of around 1%. No deflation for 6 years, well see last sentence. Let alone try looking at some graphs and data.
infaltion an issue? oh like where? where is the un-employemnt dropping? where are the wage increases?
Deflation, oh say here,
http://online.wsj.com/news/articles/SB100014240527023044184045794667505…
or worse,
http://www.telegraph.co.uk/finance/economics/10999086/Europes-bond-yiel…
or,
http://www.forbes.com/sites/realspin/2014/04/29/the-next-japan-how-defl…
"In Greece, Bulgaria, Cyprus and Ireland, consumer prices fell on a year-over-year basis in 2013. Over the same period in Spain, Latvia and Portugal, consumer prices remained static, while in Sweden, Denmark, Lithuania and Malta, they rose by the statistically insignificant rate of 0.5%."
And Nz cant be the next ireland btw?
Maybe you didnt notice the collapse of oil from $147 to $40 odd in 2008?
Housing hasnt collapsed? sure not so much in NZ....30% in USA and parts of Europe, ireland? nasty.
Nicole Foss didnt say invest, she pointed out actions to take to protect your wealth, plus get out of debt.
How are they getting their shirts ripped off btw? So if say in short term Govn bonds, yes sure low % but then so is inflation.....hardly staggering losses...
What about the ppl who said gold was going to $3000 Btw? or $5000? it peaked at $1800 odd and is now at $1200 odd, 30% loss, rather large losses, if you had listened to the inflationistas / gold bugs. This one hasnt worked out yet either, lots of paper gold out there I suspect, not attached to real gold.
regards
waymad: "but MoM reckons the US is circling the bowl.."
physicians call it CTD: Circling the Drain
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