Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
There are no changes to report today.
TODAY’S DEPOSIT RATE CHANGES
Chinese bank ICBC has today cut some short-term term deposit rates by minor amounts. TSB Bank has also cut term deposit and savings account rates.
New listings and asking prices on Realestate.co.nz were both up strongly in August suggesting an early start to the usual spring surge
HOUSE PRICE GAINS SPREAD
House price rises are increasing at a faster rate says QV. Nationally they were up +11.3% year-on-year in August, the fastest pace of growth since 2007. They say it is being driven by high migration and lack of supply, especially in Auckland. But increases in the Waikato and Bay of Plenty are also now ramping up.
A NZHerald-DigiPoll has reported that “just over 30% oppose the [TPP] trade deal and 20% support it but 45% say they don’t know enough to form any view”.
The RBA will review is key policy rate at 4:30 pm today. All 27 economists surveyed by Bloomberg think there will be no change.
TROUBLE AT MILL?
Meanwhile, the Australian current account balance for Q2 has come in much weaker than expected. It was AU$ -19 bln in Q2 vs AU$ -16 bln expected and only AU$ -11 bln in Q1 (although Q1 was revised down today). That is a pretty fast deterioration.
SHOT IN THE ARM?
Going the other way, the Australian manufacturing sector expanded for a second straight month in August, with their PMI improving by 1.3 points to 51.7. The Aussie PMI has been consistently weaker than the NZ measure for years now. The last NZ manufacturing PMI was 53.5. A lower exchange rate clearly is helping the Aussies; no doubt it will do it here as well.
CHINA SAGS FURTHER
The PMI results in Chine are getting softer with each report. Chinese manufacturers saw the quickest deterioration in operating conditions for over six years in August, according to latest business survey data. Softer activity and new order growth led to a slower increase in service sector results in August.
Five years after being appointed, the Statutory Managers of the Hubbard Management Fund have resolved all matters and have returned all investor capital along with a small surplus pool, as directed by the High Court.
WHOLESALE RATES LOWER
Swap rates fell -2 bps across the board. The 90 day bank bill rate is down -3 bps to 2.89%.
NZ DOLLAR SLIPS
The NZ dollar rose today after having tumbled in thin trading overnight. It is now at 63.7 USc, 89.5 AUc, and the TWI-5 is now down to 68.2. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.