Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
No more rate changes announced so far, but check back after 5pm when we may hear from someone who could be tempted to match ASB (and Westpac) and their hot 3 year rate.
TODAY’S DEPOSIT RATE CHANGES
Asset Finance has trimmed some term deposit rates today.
ASB Q1 PROFIT RISES 4.5%
ASB has posted a $10 million, or 4.5%, rise in unaudited September quarter profit to $233 million, helped by a lift in “other income.” During the quarter the bank grew its home loan book by a net $760 million, or 1.73%, below the overall market growth rate of 1.96%.
GOOD BUT MAYBE NOT SUSTAINABLE
The September Crown accounts show the Government tracking slightly better that what they forecast in their last forecast. Treasury reports an OBEGAL deficit of $545 mln in first quarter of financial year; better than $798 mln forecast in May; Income tax receipts came in a bit better than forecast but GST collected was lower than forecast.
AFTER THE PARTY
The latest October ASB Housing Confidence survey respondents are less bullish on expectations house prices will continue to climb over the next year, and curiously they don’t think now is a good time to buy. That does seem to correlate with a more subdued auction scene.
NZ GROUP BUYS LOCHINVER STATION
Stevenson Group has struck a deal to sell the 13,843 hectare sheep and beef station Lochinver Station to Rimanui Farms for an undisclosed sum. Companies Office records list Allan John Wadams and Arthur William Young, senior partner at Chapman Tripp, as Rimanui’s directors and shareholders. The sale is due to settle next March and comes after the Government blocked a subsidiary of China’s Shanghai Pengxin from buying the property. A strengthened beef sector and $3.5 million spent on capital improvements by Stevenson were attributed for attracting stronger NZ interest in Lochinver than was the case early last year when the property was first marketed.
FONTERRA STILL TOO DOMINANT
The Commerce Commission has found that there is still inadequate competition in the dairy sector and that this is not the time to rollback special regulations that keep the dominant Fonterra in check.
LOWERING ITS SIGHTS
The RBA has lowered its forecasts for growth and inflation in Australia, but has stopped short of signaling a near-term rate cut.
WHOLESALE RATES UNCHANGED
Local wholesale swap rates fell in a flattening bias today, with rates falling by -1 to -3 bps over the curve, and -1 bp was trimmed off the 90 day bank bill rate which is now at 2.91%.
NZ DOLLAR HOLDS
Our currency has crept marginally higher today from this time yesterday. It is now at 66.1 USc, at 92.5 AUc and 60.7 euro cents. The TWI-5 is at 71.4. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.