INTEREST RATES – NEW ZEALAND

New Zealanders are increasingly worried about interest rates as RBNZ raises rates to 14-year highs

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-May-23

The latest Roy Morgan research into the attitudes of New Zealanders towards the level of interest rates shows that the Reserve Bank of NZ’s record 11 rate rises in 18 months are clearly having an impact. Some 54.1% of New Zealanders were worried about interest rates in the year to December 2022, compared with just 34.6% in the year to June 2021. The rapid series of interest rate increases since late 2021 is hitting New Zealanders with a mortgage harder than anyone else; 63.3% of New Zealanders who are paying off their home loan say they are ‘worried about interest rates at the moment’, up from 23.1% in June 2021. Concern about interest rates has increased for renters and home owners as well, but at a much lower rate. Now around half of renters (50.1%) and home owners (49.2%) say they are worried about interest rates.

CORPORATES
ROY MORGAN LIMITED

NZ Reserve Bank nails our RBA’s failure

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Original article by Terry McCrann
Herald Sun – Page: 49 : 24-Nov-22

Reserve Bank of Australia governor Philip Lowe has stated that wage outcomes must be consistent with the return of inflation to the central bank’s target range of 2-3 per cent. Increasing wages in line with the inflation rate would inevitably result in large-scale job losses and further boost inflation. Allowing inflation to remain well above the target range for too long would also heighten the risk of a wage-price spiral. The Reserve Bank of New Zealand recognises these risks; its cash rate was increased by 75 basis points on Wednesday, and it seriously considered a one per cent increase. In contrast, the RBA increased the cash rate by just 25 basis points in November, despite the inflation rate in both countries being nearly identical. NZ’s cash rate is now 4.25 per cent, but Australia’s cash rate will still be just 3.1 per cent if – as expected – the RBA announces a 25 basis point increase in December.

CORPORATES
RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND

Kiwi cut raises the prospect of negative interest rates

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Original article by Adam Creighton
The Australian – Page: 4 : 8-Aug-19

The Australian dollar reached a 10-year low of $US0.6680 in local trading on 7 August, after the Reserve Bank of New Zealand reduced official interest rates by 50 basis points to 1 per cent. Central bank governor Adrian Orr has not ruled out the prospect of negative interest rates or measures such as quantitative easing. The RBNZ’s move is likely to strengthen the case for further monetary policy easing in Australia before the end of 2019.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA. DEPT OF THE TREASURY

Why New Zealand moved and the RBA held

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Original article by David Rogers
The Australian – Page: 27 : 9-May-19

The Reserve Bank of New Zealand’s decision to reduce the cash rate for the first time since 2016 had been widely expected. The central bank attributed its move to the outlook for global economic outlook and domestic factors such as the outlook for employment and inflation. Meanwhile, market pricing suggests that the Reserve Bank of Australia will leave the cash rate on hold until at least September, while a second rate cut could be delayed until May 2020.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA

Canada, NZ moves point to more RBA rate cuts

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 & 8 : 17-Jul-15

The Australian dollar reached a low of $US0.7354 on 16 July 2015, after the Bank of Canada reduced its cash rate to 0.5 per cent. The Reserve Bank of New Zealand is widely tipped to ease monetary policy in July, and economists suggest that this may prompt further rate cuts in Australia before the end of the year. Citigroup anticipates a rate cut of 25 basis points in November, while Deutsche Bank forecasts that the Australian dollar will test the $US0.65 level by the end of 2016.

CORPORATES
RESERVE BANK OF AUSTRALIA, BANK OF CANADA, RESERVE BANK OF NEW ZEALAND, CITIGROUP PTY LTD, DEUTSCHE BANK AG, ROYAL BANK OF CANADA, UNITED STATES. FEDERAL RESERVE BOARD, UBS HOLDINGS PTY LTD