Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
DEPOSIT RATE CHANGES
No changes here either. But I do recommend you read this about UDC even if you currently don't have investments with them.
CRACKED RECORD
The Reserve Bank says monetary policy will be accommodative for a considerable period, and numerous uncertainties remain. 1.75% will be the OCR until well after Graeme Wheeler leaves in September. Economist observers however do see rises coming next year.
HIGHER ENERGY INTENSITY
MBIE released its Energy Quarterly review today to the end of 2016 and there were two notable points. Firstly, the amount of our electricity generated from renewable sources continues to rise, even though it is already very high. It is now over 88%. But equally impressive is that electricity consumption is just not growing - if anything it is declining according to this overview. The same is true for fossil fuels; all declining consumption/demand. It can only mean the economy's energy intensity is rising quickly. We are producing more with less energy.
DON'T FALL FOR IT
We know wholesale electricity prices are not rising either; in fact is a slow decline and about half the level of just two years ago. MBIE's monitoring of retail electricity pricing shows these are falling too. Retail electricity prices are down -2.5% in a year. These changes will help you understand why the electricity retailers are so keen to get you to sign up for a 'fixed price deal'. Their claim that it will prevent you being exposed to electricity rate hikes is proving to be hollow; such contracts insulate the electricity retailer from falling prices with their customer the sucker.
TACKLING HOMELESSNESS
Auckland Council and the Government are funding a local initiative which aims to house 472 homeless Aucklanders and provide wrap-around services to address the causes of their homelessness. It is essentially a two year trial and will be run by experienced community organisations, including Affinity Services, Lifewise and the Auckland City Mission, LinkPeople and Vision West. It follows an international model.
POPULATION CHANGES
Data out in Australia today shows that their population grew by +348,700 people in the year to September 2016 with +193,200 of them from immigration; that is migrants made up 55% of the growth. (In the same period, New Zealand's population grew by +97,500 and migrants made up 72% of that growth.)
ON HIS WAY
Chinese Premier Li Keqiang arrived in Canberra for a five-day visit focussed on strengthening China's economic relationship with Australia. He is then visiting New Zealand for five days after that. With the evaporation of the TPP they will be looking for opportunities to cement trade relations and elbow out US influence.
WHOLESALE RATES SLIP, FLATTEN AGAIN
Rates for terms of one year are up +1 bp today, for five years they are down -1 bp and for ten years they are down another -3 bps today. The 90 day bank bill is now at 1.97%.
NZ DOLLAR STILL STABLE
The NZD is falling but only back to the level it was at this time yesterday at 70.3 USc. On the cross rates we are now at 91.8 AUc and 65.2 euro cents. The TWI-5 is still at 75.2.
You can now see an animation of this chart. Click on it, or click here.
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