What happened Monday

A review of things you need to know before you go home on Monday; Westpac joins the 5.99% party, Rents fall unexpectedly, card spending flat, swap rates claw back recent falls

11th Aug 14, 4:00pm by David Chaston

For Monday, August 11, 2014. <a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

Here are the key things you need to know before you leave work today.

TODAY'S MORTGAGE RATE CHANGES
The only change today was from Westpac, who dropped their one year 'special' and added a two year fixed 'special' at 5.99%, the same rate as most of their rivals.

TODAY'S DEPOSIT RATE CHANGES
No rate changes again today.

RENTS FALL
The July data out today from MBIE on median rents shows something a little unexpected - falling rents in the major cities. And that is for both 3 bedroom houses, as well as 2 bedroom flats. It's a very new, very out-of-trend.

RETAIL CARD SPENDING FLAT
Electronic card spending in New Zealand was flat for a second consecutive month in July. In general, domestic demand conditions still look to be robust, and the lack of any significant inflationary pressures implies that underlying volume growth in the retail sector remains good. Consumer confidence continues to hold at a relatively high level, while strong population growth and the tightening labour market are also positives for household spending. However, the slowing housing market and rising mortgage rates threaten to take some of the heat out of spending growth, while the ongoing drop in dairy prices could have negative flow-on effects for overall consumer demand heading into 2015. (H/T GK.)

WHOLESALE RATES
Swap rates were back up today today between +2 and +6 bps across the board effectively gaining back most of the fall on Friday. This follows the apparent easing of Ukraine risks and the reaction on Wall Street to take on more risk. The 90 day bank bill rate was unchanged at 3.67%.

OUR CURRENCY
The whole risk-on, risk-off meme of the interest rate markets has completely passed the fx markets by. The NZ dollar is basically unchanged, still at 84.7 USc, is at 91.2 AUc and the TWI is at 79.3.

You can now see an animation of this chart. Click on it, or click here.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

3 Comments

by Stephen Hulme | 11th Aug 14, 4:31pm 1407731467

The July data out today from MBIE on median rents shows something a little unexpected - falling rents in the major cities. And that is for both 3 bedroom houses, as well as 2 bedroom flats. It's a very new, very out-of-trend.

LOL - if the banks paid higher levels of deposit interest to those who sold to foreigners to rent back their old or other properties maybe they could afford higher payments.

After all, didn't Moody's just claim that: NZ deposit growth continues to exceed loan growth?

by Henry_Tull | 11th Aug 14, 10:41pm 1407753701

progress or innovation?

Gentrack shares have slipped after chairman John Clifford admitted the company knew of a project delay that later sparked a profit downgrade before it completed its initial public offering in June.

Clifford defended the business software firm's decision not to advise prospective investors of the delay at the time, saying it didn't know until after the company listed on the NZX on June 25 that it would have any financial implications.

Gentrack's shares dropped 15 cents to $2.10 in afternoon trading after the admission.

http://www.stuff.co.nz/business/industries/10371571/Gentrack-shares-down-after-disclosure

a disappointment, and should be a rare event in a congenial club where advance notice of candidates is given to members. Often their proposer and seconder are expected to resign from the club, as the failed election implied that they have fallen out of touch with the club's ethos as they were expected to realize that their candidate is undesirable and quietly convince him to remove himself from the candidacy before the lengthy application process reaches the voting stage.

how could a delay not have a financial implication?

by Stephen Hulme | 12th Aug 14, 9:17am 1407791867

how could a delay not have a financial implication?

It doesn't for those on the receiving end of the wealth transfer connivance- hucksters rarely get jail time in NZ - look at the long drawn out nonsense at Feltex - where apparently the board members believed it was immaterial that ANZ had or was about to withdraw a credit facility to an over indebted and failing business structure prior to an IPO. Read more