Here are the key things you need to know before you leave work today:
MORTGAGE RATE CHANGES
BNZ has hit the market today with a 4.49% 2 year 'special', -16 bps lower than its main rivals but not the lowest 2 year rate in this market.
TERM DEPOSIT RATE CHANGES
No changes to report here today, yet.
A BUMP IN THE ROAD
February used car imports fell -1.7% from the same month a year ago. That change is significantly lower than the +6% we have come to expect from this category and it is probably due to the turning away of some car carriers who had a serious stinkbug infestation onboard. The 12,048 cars that were sold is the lowest monthly level since June 2016.
DAIRY PRICE WATCH
We have a dairy auction tomorrow. The derivatives market suggests WMP prices will be -3.6% lower.
UPDATE ON PUBLIC HOUSING SUPPORT
The size of public housing was revealed today at 66,367 units, with 45.6% of them (30,249) in Auckland. 95.6% of all public housing is for people with income-related rent subsidies. These cost taxpayers $17.3 mln per week ($900 mln per year). In addition, 291,634 people are receiving the Accommodation Supplement costing $20.9 mln per week and paid to private landlords ($1.087 bln per year). Another 69,751 people receive Temporary Additional Support, also paid to private landlords and costing $4.5 mln per week ($234 mln per year). The number of people on the Social Housing Register is now 7,725. Details here and here. There are 1,842,500 private dwellings in New Zealand as at December 2017, 37% of which were not occupied by the owners. So those receiving either the Accommodation Supplement or Temporary Additional Support represent 53% of all rented accommodation.
WHERE THE GROWTH IS PLANNED
The Government has targets to grow public housing. The totals as at December 2017 are 66,367 and by 2020 that is planned to grow to 72,000, and increase of 5,633 units in two years. In Auckland, the current numbers are 30,249 and this is planned to grow to 33,803 by 2020, a gain of +3,554 houses. The Auckland growth represents 63% of the national targets. Details here and here.
COMPLETE THE CENSUS NOW
Today is Census Day. You need to complete the forms now. So far, 1.2 mln people have used the online option, but given there are 4.8 mln New Zealanders needing to be surveyed, that is still an awful lot of form filling to be done today.
UNDER 3%
Australia's 2017 current account deficit narrowed from -AU$51.5 bln in 2016 to -AU$42.4 bln. This was essentially driven by changing a goods deficit in 2016 of -AU$7.9 bln to a surplus of +AU$14.0 bln while their small services deficit shrank even further. (Fourth quarter data rose slightly.) As a % of GDP, their current account deficit is just -2.4%. For comparison, the New Zealand level is -2.7% of GDP.
STRONG ENOUGH FOR A 'SEVERE DOWNTURN'
Ratings agency Fitch says the major Australian banks' ability to withstand a severe downturn in their housing market and household sector, should it occur, has been strengthened by regulatory intervention to tighten underwriting standards and bolster capital buffers.
BENCHMARK INTEREST RATES HIGHER
Wholesale swap rates have risen today in a steeper manner again. The two year is up +1 bp, the five year is up +3 bps, and the ten year is up +4 bps. The UST 10yr is up to 2.89% today (+5 bps). The Aussie Govt 10 yr is also up +4 bps at 2.77%. The China 10 yr is going the other way, down -4 bps to 3.86% while the NZ Govt 10 yr is up another +3 bps today to 3.03%. The 90 day bank bill rate is unchanged at 1.90%.
BITCOIN OFF
The bitcoin price is now at US$11,255 or -1.5% lower than this time on yesterday.
NZ DOLLAR UNCHANGED
The Kiwi dollar is unchanged today after a bit of a sag overnight and a recovery today. It is now at 72.3 USc. We are at 93.1 AUc and have slipped also against the euro at 58.6 euro cents. That puts the TWI-5 still at 73.4.
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