Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today.
DEPOSIT RATE CHANGES
TSB Bank cut -10 bps to their 4 and 5 month rates. RaboDirect cut -10 bps to their PremiumSaver account taking the maximum rate to 2.50%. RaboDirect also boosted their 3 month term deposit rate, adding +25 bps to 3.10%.
UDC SUSPENDS TERM DEPOSIT APPLICATIONS
UDC has closed for new applications for term deposits. They will likely still offer rollover options for existing investors, but there will apparently be some restrictions. Details of the new status will be announced tomorrow (Friday), while their status is awaiting RBNZ and OIO approvals for the sale of their business by ANZ to TIP/HNA Group. (We have removed their rates on our website, but if they still show on your browser, it may be due to caching.)
ALL YOU NEED TO KNOW ABOUT THE BUDGET
Today is all about the Government's election year budget. We have many reviews but start with this one. A summary of the spending and tax collection plans are here and here.
LOGS ON A ROLL
Our May log market report has its price index reach a record high. The China log market is balanced. The Indian market is recovering. And the local market demand remains strong.
'BREACH OF TRUST'
The head of the Aussie regulator ASIC said today that bank moves to raise their interest rates independently of the official central bank changes have been a key reason public trust in banks has eroded. He says that customers, who have virtually no influence over rates, have every right to expect banks to "do the right thing". But when they don't, trust evaporates.
WHOLESALE RATES DOWN, FLATTER
Following Wall Street earlier, local swaps rates have fallen a little and flattened. The two year is down -1 bp, the five year is down -2 bps, and the ten year is down -3 bps. The 90 day bank bill rate is unchanged at 1.97%.
NZ DOLLAR FIRMS
The NZD has held on to its overnight rise and is now at 70.4 USc. On the crosses we are at 93.8 AUc, and at 62.7 euro cents. The TWI-5 is at 74.6. Meanwhile bitcoin has hit yet another new record at US$2,579, and that is up +9.5% on the day. That is three days in a row of almost +10% per day rises. Meanwhile, the price of gold has steadied.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
Select chart tabs
5 Comments
I reckon that the successful Rock Lab rocket launch might be the most significant piece of news today.
http://www.stuff.co.nz/business/92922533/rocket-lab-successfully-launch…
The head of the Aussie regulator ASIC said today that bank moves to raise their interest rates independently of the official central bank changes have been a key reason public trust in banks has eroded. He says that customers, who have virtually no influence over rates, have every right to expect banks to "do the right thing". But when they don't, trust evaporates.
The key point of interest remains, did banks lose any customers? I doubt it. They (customers) are captured with few credible alternatives. Which in turn makes a mockery of the RBNZ imposing OBR based upon the claim that, "Each has freely invested in a private institution and has enjoyed a return on that investment whilst accepting the risks associated with the investment." Read more
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.