tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

Mortgages

Mortgage Rates Daily Commentary
Saturday 7 December 2024  Add your comment
[TMM] Your Weekend Read

SMEs gearing up for silly season but for many of them they may need some additional short term finance. Here's how you can help.

rss
Latest Headlines

NZ 1st-qtr inflation accelerated less than expected

New Zealand inflation accelerated less than expected in the first quarter, suggesting there's less need for Reserve Bank Governor Alan Bollard to rush to raise interest rates this year.

Tuesday, April 20th 2010, 12:45PM

by BusinessDesk

The Consumers Price Index rose 0.4% in the three months ended March 31, for an annual pace of 2%, according to Statistics New Zealand. Economists had expected a 0.6% gain, based on a Reuters survey though the number has printed closer to Bollard's estimate of 0.3%. CPI was -0/2% in the fourth quarter of 2009.

The inflation figures may have a bearing on Bollard's review of monetary policy next week, when he is expected to keep the official cash rate at a record low 2.5% while providing further hints to the timing of any eventual hike. Some economists are now betting he will wait until the third quarter rather than move mid-year as he has been indicating.

Non-tradable inflation was 0.5% in the first quarter, milder than the 0.6% pace the central bank had expected, which may provide some comfort over price increases in the domestic economy. Tradable inflation was just 0.1%.

"The slightly softer non-tradable result gives the RBNZ a bit of inflation breathing space in the near-term," said Christina Leung, economist at ASB. "There is now a less compelling case for a June OCR hike."

The New Zealand dollar fell to 70.85 US cents after 71.24 cents immediately before the report. The trade-weighted index, or TWI, fell to 65.65 from 66.02.

Food and fuel prices drove up the CPI in the latest quarter, according to the government statistician. Food rose 1%, led by higher prices of groceries, while transport prices gained 1.1% on more-expensive petrol.

Also among the six industry groups to record an increase, education rose 4.8%, liquor and tobacco rose 1.3%, health gained 0.9% and housing and household utilities rose 0.3%. The biggest individual items were a 6.9% gain in the price of petrol, a 6% increase in fresh milk and a 6.1% gain in university fees.

Among the five declining groups, recreation and culture fell 1.4%. The biggest individual contribution to lower prices came from an 8.3% decline in international air transport prices, the report shows.

Traders are betting Bollard will raise the OCR by about 1.5 percentage points in the next 12 months, based on the Overnight Index Swap curve. That suggests the RBNZ will lift rates at every opportunity this year once he begins.

A cluster of factors may yet combine to drive up headline inflation this year, including a possible increase in GST to 15%, higher ACC charges and the Emissions Trading Scheme. That could push annual inflation to 4% by year end.

« NZ dollar follows Australian dollar lower on weaker home loansBollard to hold OCR unchanged »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special ▲8.64 ▲6.74 ▲6.49 ▲6.39
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.54 5.99 5.89 5.69

Last updated: 6 December 2024 9:11am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com