Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
DEPOSIT RATE CHANGES
SBS Bank changed three term deposit 'special' rates today. It raised its 18 month rate by +5 bps to 2.75%, its 24 month rate by +10 bps to 3.90, but it ended its 6 month 3.80% special, reverting to 3.45%, a -35 bps drop.
CRACKING A MILLION
Data from the 'Fact Sheets' published by MSD, plus the numbers on NZ Super, shows that for the first time ever we now have more than 1 mln people "on a benefit". 718,000 of them are on NZ Super (not means tested), and 297,000 are on a means-tested benefit. One year ago the numbers were 691,000 / 301,000 and five years ago it was 585,000 / 351,000. Basically claims on NZ Super are growing faster than the efforts to get people into work. At the same time the labour force has been growing, so the number of workers-per-beneficiary is actually up from 2.39 five years ago to 2.49 now. We also track this with WfF claims added in (but remember those claimants are also working) and that has been rising too.
BIG BROTHER IN TOWN
The Chinese Premier is in the country this week, so we will get a flurry of 'agreements' from that. Today's include the cracking open of the chilled meat trade, raising the number of passenger flight inbound to 59 per week from 49 (Chinese passport holders will now be able to use the SmartGate facility), and an upgrade to our existing FTA is to be started. Since the current NZ-China FTA came into force in 2008 two-way goods and services trade between New Zealand and China has nearly tripled from NZ$8 bln to NZ$23 bln.
FACING A BIG THREAT
In Northern Queensland, residents are being told to move ahead of a major storm threat.
CASHLESS CLOSER?
The RBA is pushing ahead with a New Payments Platform that may lead to the long-foreshadowed cashless society by as early as 2020. Block-chain type transactions may be part of the roll-out.
WHOLESALE RATES SLIP
Swap rates have fallen -2 and -3 bps today across the curve. The 90 day bank bill is unchanged at 1.98%.
NZ DOLLAR STABLE
The NZD has been rising today and is now at 70.5 USc. But to be fair, the shift 'up' is minor. On the cross rates we are now at 92.5 AUc and 65 euro cents. The TWI-5 is now at 75.2.
You can now see an animation of this chart. Click on it, or click here.
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