Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
ASB and BankDirect both raised their variable rate by +10 bps to 5.65%. (Sovereign made a similar change late last week.)
TODAY'S DEPOSIT RATE CHANGES
No changes here today.
A BLIND EYE
Although the FMA warns commissions paid to financial advisers risk bumping up the price of life insurance, and it issued a report highly critical of adviser/broker churn (especially by some AFAs), minister Goldsmith remains adamant commissions won't be banned. The evidence the FMA produced today is fairly ugly and shows how commission signals can distort behaviour.
A BIG UPGRADE
We have launched an important upgrade of our home loan affordability reporting. The May details are here. The explanation of what has changed and why is here.
CHRISTCHURCH CONVENTION CENTRE GETS FINAL TICK
An icon convention centre is to be developed in Christchurch with a key approval announced today. It is now "on course" to open in late 2019. Funding is allocation, but the amount held back while negotiations with potential contractors is completed.
ONLINE SALES BOOMING
BNZ is reporting that online retail sales at local sites followed a strong April with a similarly positive result in May - up +15% on May last year. Online purchases by Kiwi’s from offshore sites also turned in double digit-growth (up +13% on last May), albeit not quite as strong as in recent months.
BANKERS TALK THEMSELVES UP
The NZ Bankers Association is saying the NZ banks are "strong, well-funded and well regulated." They also say “New Zealand can have confidence in our banking system. Our banks were resilient in the GFC, and we remain well positioned to withstand any turbulence in the global economy.”
IMPORTANT KIWISAVER REMINDER
You have until June 30 (that is, tomorrow) to ensure you have made personal contributions of at least $1,042.86 in the past year. If you think you have missed out via your employer systems, you can top it up via your internet banking systems, making a contribution directly to the IRD. By making a contribution of at least that amount you will then qualify for the maximum Government subsidy of $521.43. What's not to like about over $500 of free money? It's worth the effort.
SUMMER SIZZLE IN WINTER
Winter mortgage approvals are running strongly. They are up +10% in number from the same period a year ago and up +20% in value.
SWAP RATES RISE
Swap rates rose today, up +2 or +3 bps across the curve. NZ swap rates are here. The 90-day bank bill rate is up again and by another +3 bps, now at 2.40%. That actually takes it back to about its highest since the March OCR cut.
NZ DOLLAR UP
They are not big moves, but the next result today is a further firming of our currency. The NZD is at 70.8 USc, at 95.6 AUc, and 64.1 euro cents. The TWI-5 is now just over 74.7. Check our real-time charts here.
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.