Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
No rate changes again today.
TODAY’S DEPOSIT RATE CHANGES
No rate changes today here either.
CAN’T HOLD ITS RECENT GAINS
We have another GDT dairy auction due next Wednesday and today there was a noticeable, but small, roll back in pricing on the NZX derivatives market. That sort of reflects what the USDA reported overnight; some steam going out of the recent upward trend.
CHALLENGES BUT RESPECTABLE
ANZ’s regional monitoring shows composite economic activity rising +3.1% in the North Island and +1.7% in the South Island on a year-on-year basis. The strongest rates of quarterly growth were in the top and bottom of the country. Activity rose in eight of the nine North Island regions and four of the five South Island regions, with activity falling in Wellington and the West Coast. While annual growth eased to 2.8% – a three year low – it’s still very respectable. Forward-looking indicators suggest a solid pace of expansion will be sustained for most regions, they say.
A SMALL ADJUSTMENT
Around 3,900 families receive the “minimum family tax credit”, most of whom are a sole parent caring for one or two children. They are to get an after-tax increase of $14/week starting on April 1, 2016. All up, that is a $30 mln change.
GETTING MORE VALUE FROM INTERNATIONAL STUDENTS
The Government has announced a new student visa designed to make New Zealand more competitive for retaining and attracting top international students. The Pathway Student Visa will allow international students to undertake a pathway of up to three consecutive programs of study with selected education providers. A pathway can be offered by a single education provider or in partnership with other selected education providers. They will be valid for a maximum of five years.
WHOLESALE RATES SETTLE
Local wholesale swap rates for 2 and 3 years are up +1 bps while those for 7 and 10 years are down -1 bps. While the rate curves are not dramatically flatter, this does represent more moves in that direction. The 90 day bank bill rate pulled back another -2 bps to 2.84%.
NZ DOLLAR HANGS ABOUT
Our currency has meandered on light volume today. The Kiwi is now at 65.7 USc, at 91 AUc, and 62 euro cents. The TWI-5 is still at 71.5. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.