Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No rate changes today.
DEPOSIT RATE CHANGES
ANZ shifted its key rate to 3.60% for nine months (from 3.50% for eight months which has reverted to 3.30%). At the same time it trimmed -10 bps from its 1 year rate to 3.25%. FE Investments has cut all its rates from 1 to three years and eliminated its nine month rate.
INFLATION HIGHER THAN EXPECTED
Housing, insurance and food price pressures have pushed up CPI inflation to near RBNZ’s 2% target. The annual rate of 1.9% is slightly above market expectation, and well above RBNZ’s 1.6% forecast. Swaps rates rose on the news. The NZD rose marginally.
SUPER FUND BOSS ADRIAN ORR'S PAY RISE 'NOT JUSTIFIED'
The NZ Superannuation Fund's annual report, released today, shows CEO Adrian Orr's total remuneration increased 15% in the June year to $1,217,112. State Services Commissioner Peter Hughes says his advice to the board was that an increase of this size was not justified. However, Hughes says the board made its own decision and did not follow his advice. The Super Fund's annual return, after costs and before tax, was 20.71%. It now stands at $35.4 bln. Orr has been in his role for 10 years.
FARM SALES VOLUMES DOWN, PRICES UP
September quarter farm sales volumes fell 30% year-on-year according to the Real Estate Institute of New Zealand. There were 271 sales in the quarter but only 85 in the month of September. Prices fared better than sales volumes with the REINZ All Farm Price Index up 11%.
LIFESTYLE BLOCK SALES DOWN, PRICES UP
Meanwhile, the REINZ says sales of lifestyle blocks also fell during the September quarter, by 23% year-on-year to 1716, just 572 in the month. However, the median price for lifestyle blocks was up 12.3% compared to a year earlier.
ANZ SELLS ONEPATH TO IOOF HOLDINGS
The ANZ Group says it's selling its OnePath pensions and investments and aligned dealer groups business to IOOF Holdings Limited for A$975 million. The deal sees ANZ enter into a 20-year strategic alliance to make available IOOF superannuation and investment products to ANZ customers. ANZ says the sale provides it with greater flexibility to consider options for its life insurance business including strategic and capital markets solutions.
Australian vehicle sales were down -2.4% in September compared with the same month a year ago. For the year to September they were unchanged. That contrasts with New Zealand where the same data is +4.5% and +11.5%.
WHOLESALE RATES UP
Local swap rates are all up +2 bps today across the board 2-10 years. The 90 day bank bill rate is unchanged at 1.93%.
NZ DOLLAR UNCHANGED
The NZ dollar is level at 71.6 USc. On the cross rates we up a little at 91.3 AUc and 60.8 euro cents. The TWI-5 is now at 74.5. The bitcoin price is also little changed today to US$5,652.
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