Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
ANZ have launched a 4.89% one year ‘special’, matching ASB for this term. This compliments their 4.99% two year rate.
TODAY’S DEPOSIT RATE CHANGES
Cooperative Bank cut term deposit rates across the board.
A BIGGER SURPLUS
Treasury reported a NZ$1.176 bln Budget surplus today for the 11 mths to May. Taxes on corporate profits are collecting above forecast, but GST collections is below forecast. Government spending is running less than expected.
Mortgage approval data out today for last week is nothing short of stunning for this time of year. 6,673 new mortgage were approved worth $1.445 bln. That is at the same rate as we saw in the peak March period. And that is +28% above the same week a year ago.
OUR ACHILLES HEEL
Keyser Soze has pointed out that the RBNZ has updated its NZ household-debt-to-disposable-income ratio for March 2015 yesterday. That has now reached highest point ever – 162.2% – about a solid point worse than originally forecast. It has increased by +11.4% from 2012 Q1. and now above the previous peak reached in Q2 of 2009 of 161.2.
CHINA PANIC GROWS
China’s stock market has fallen sharply again, and now half of listed stocks are suspended from trading. It plunged -8% in 3 minutes. China’s stock market has a different profile from western markets; most activity is driven by individuals rather than institutions and pension funds. The NZX is also down, but by a modest -0.5%.
WHOLESALE RATES DROPS
NZ swap rates have fallen sharply today, following big falls on Wall Street last night. The falls are -2 to -10 bps and means the two year swap rate is now only 2.93%. The 90 day bank bill rate is up one bp to 3.19%.
NZ DOLLAR SLIPS
The NZ dollar has sunk slightly today. It is at 66.4 USc, at 89.5 AUc, and 60.5 euro cents. The TWI is still at 70.9. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.