Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There was a Housing NZ Corp mortgage rate change today. They have raised their two year fixed rate to 6.39%, up +20 bps from 6.19%. And they have dropped their three year fixed rate by a paltry -1 bps to 6.59%. You wonder why they bothered with that one. Then TSB Bank has also cut two fixed home loan rates. It cut its 1 year standard rate to 5.95% from 6.00%, and it has cut its standard three year rate to 6.30% from 6.60%, a -30 bps fall.
TODAY'S DEPOSIT RATE CHANGES
There were no changes today.
NEW FAIR DEALING RULES
Issuers and third parties who advertise in order to promote offers need to be aware of new FMC Act fair dealing provisions and how they apply, says the FMA. The law makes it an offence to engage in misleading or deceptive conduct in relation to financial products or to make false, misleading or unsubstantiated representations about financial products. There is a new definition of 'advertisement'. In relation to an offer or intended offer, it is any form of communication made to the public or a section of the public for the purpose of promoting an offer.
SERVICE SECTOR HUMMING
The NZ service sector is resilient. The latest PSI for August was 57.9. Although this was down 0.5 points from July, it continues to show healthy activity in the sector. Employment was at its highest level since the survey began in 2007, as was supplier deliveries. Also, stocks/inventories displayed its second highest result. The August result was a consistent performer with all regions of the country also in positive territory. BNZ said the result was consistent with faster-than-average economic growth.
CARS OUT OF FAVOUR IN AUSTRALIA
Aussie car sales were soft in August, according to ABS data released today. In fact, sales of passenger cars in August were down -11% on the same month a year ago. Overall vehicle sales were only held up by SUV sales, and still these overall sales levels were down -5.3% year-on-year. It was the worst sales performance in more than three years.
SMEs OK WITH TAX POLICY
Bucking the trend of most countries around the world, New Zealand small to medium enterprises (SMEs) are extremely comfortable with New Zealand tax policy and the tax risk on their companies. In the latest Grant Thornton International Business Report (IBR) survey, New Zealand was only headed by Sweden out of 33 countries concerning the levels of comfort SMEs had with tax policy and tax risk. In New Zealand, 26% of companies saw tax policy and tax risk as a high priority and 40% as a low priority with the remaining 34% not seeing it as a priority at all. Compare this 'tax risk as a high priority' with key economies such as Japan (97%), Indonesia (90%), Germany (84%), the United Kingdom and the United States (79%) and China (66%).
MISSING OUT BIG TIME
Slightly more people this year than last made KiwiSaver contributions of at least $1,042 a year, the minimum level needed to qualify for the $521 Member Tax Credit paid into these accounts by the Government. But a huge number of people missed out. According to ANZ Investments, that means that about $400 million of potential subsidy was forfeited by people who did not make that minimum contribution.
WHOLESALE RATES
Swap rates rose today +1 bps across the board. This rise has not yet reflected the +6 bps rise in the UST 10yr yields we saw in New York at their end of last week. The 90 day bank bill rate was up again today and now at 3.74%.
OUR CURRENCY
Check our real-time charts here. The NZD held its own again today. It is down marginally to 81.3 USc but up against the Aussie to 90.3 AUc. The TWI is now at 78.2.
You can now see an animation of this chart. Click on it, or click here.
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