web analytics

Posts Tagged ‘interest rates’

Dire warnings of the bleeding obvious

Written By: - Date published: 7:57 am, December 1st, 2016 - 14 comments

Warnings from the government and the Reserve Bank that first home buyers are taking on too much debt. Prices are too high, wages are too low, interest rates are rising. These warnings are effectively telling the average first home buyer to give up.

Housing “affordability” blowout

Written By: - Date published: 11:31 am, November 29th, 2016 - 9 comments

Andrew Little was on RNZ this morning talking housing affordability. “The amount people are having to borrow for their first home has increased 43 percent in the last two years.”

Trump and the NZ housing bubble

Written By: - Date published: 7:26 am, November 16th, 2016 - 21 comments

The bright orange trigger for a sharp rise in mortgage interest rates may have just arrived. Our over-indebted home owners are highly vulnerable.

Polity: Armstrong on National on Labour

Written By: - Date published: 1:20 pm, April 7th, 2014 - 13 comments

It isn’t a new ploy from National or its supporters. “Mortgage rate rises under National: Good. Mortgage rate rises under Labour: Dreadful!”. I’ve seen David Farrar argue both that a recession is the perfect time to cut taxes because it stimulates the economy, and a recovery is also the perfect time to cut taxes to provide a dividend. It reminds me of that old chestnut, most recently applied to Don Brash: “The answer is tax cuts. What is the question again?”

Vampire Economics: The Reserve Bank Act

Written By: - Date published: 1:03 pm, August 19th, 2011 - 50 comments

I came across this blog called Howdaft written by Darkhorse recently. It consists of five posts written in June. Five of the best pieces of leftwing economic thinking you’ll see anywhere – something we’ve been short on recently. I’ve tried to contact Darkhorse, but no luck. If you’re out there, drop us a line. In the mean time, here’s one of the posts.

Widening movement for monetary policy reform

Written By: - Date published: 11:15 pm, June 24th, 2010 - 42 comments

Unique in the world, we task our Reserve Bank with only one goal – keeping inflation in the target range – and give it one blunt tool to achieve it. Adding other objectives would bring us into line with other countries and giving the Bank better tools is long overdue. We need a smarter, more sophisticated approach to monetary policy. It is great to see the Left pushing for it.

Pedal to the metal but still no traction

Written By: - Date published: 12:43 pm, January 29th, 2009 - 5 comments

Another review of the Official Cash Rate, another record cut. This time, it’s a 1.5% cut bringing the OCR to 3.5%. That’s the lowest rate since the OCR was introduced in 1999.  Good news for those with floating rate mortgages (not so good for the 80% of mortgagees with a fixed rate) and an opportunity for me to feel […]

Slash and pray

Written By: - Date published: 10:05 am, December 4th, 2008 - 14 comments

The Reserve Bank has cut 1.5% off the official cash rate, bringing it down to 5%. The rate has now been cut 2.5% in just six weeks, an unprecendented slashing. Mortgage rates will drop as well, but perhaps not by as much because the banks (excluding Kiwibank) have to borrow most of their money from […]

Reserve Bank drops OCR 1%

Written By: - Date published: 9:02 am, October 23rd, 2008 - 30 comments

The OCR is down from 7.5% to 6.5%. That’s an unprecendented cut in one go and further confirmation that we are entering tough economic times. Inflation has been high but the Reserve Bank thinks the increasingly likely global recession will remove inflationary pressure. Keeping the economy going will be the challenge.

Inflation up but already on way down

Written By: - Date published: 1:18 pm, October 21st, 2008 - 21 comments

Inflation hit 5.1% for the year to September driven by the mammoth spike in oil, food, and other commodity which has abated since then, for now. There is nothing that could be done to avoid this impact on New Zealand from international markets. The economy is already in recession, and now would be the worst […]

Bollard cuts the OCR

Written By: - Date published: 10:52 am, July 24th, 2008 - 20 comments

The Reserve Bank has dropped the Official Cash Rate from 8.25% to 8%. Inflation is well outside the Bank’s 1-3% target range but there appears to be a recognition that there’s no point strangling our economy with high interest rates when that can’t bring down international oil and food prices. Don’t expect mortgage rates to […]

Inflation up but interest rates must come down

Written By: - Date published: 12:27 pm, July 15th, 2008 - 18 comments

Inflation was 1.6% in the last quarter, 4% annually, the highest in 13 years. Petrol is driving inflation. By itself petrol accounted for a 1.2% increase. Food is the other big increase, also accounting for a 1.2% and that is itself being driven by international oil prices. The price of oil is beyond our control […]

OCR unchanged

Written By: - Date published: 11:37 am, June 5th, 2008 - 14 comments

The Reserve Bank has left the Official Cash Rate unchanged; no-one expected a rate cut this early. It’s encouraging that Bollard has firmly signalled that interest rates will be coming down this year despite projected inflation reaching 4.7% in the September Quarter. There’s no use in the Reserve Bank strangling our economy with high interest […]

National: we’ll borrow for tax cuts for the rich

Written By: - Date published: 12:30 pm, May 19th, 2008 - 77 comments

Discovering National’s policy is a bit like the old art of Kremlinology, when Western intelligence agencies would attempt to discover the inner workings of Soviet politics by looking at who stood next to whom in pictures, and what hand politburo members carried their briefcases in. The latest subtle signs from National regarding its tax policy […]

Time to let interest rates fall

Written By: - Date published: 1:59 pm, May 16th, 2008 - 23 comments

The economy is clearly slowing. Fundamentally, it remains strong with high employment, good wages rises, and strong prices for our exports but employment and retail spending both declined in the first quarter of this year, the housing market is flat, and there is a danger that if the Reserve Bank keeps its foot on our […]

Our bank beats the rest

Written By: - Date published: 2:34 pm, May 2nd, 2008 - 29 comments

Today, ANZ and National Bank announced they are lifting their variable mortgage rates another quarter of a percent to 10.95%. That comes a week after the two banks, which are jointly owned, announced a net profit of $520 million in six months, up 7% on the previous period. Yesterday, Westpac announced a $244 million profit, […]

Recent Comments

Recent Posts

  • Govt boosts tourism transformation to strengthen workforce and improve outcomes
    The Tourism Industry Transformation Plan outlines key actions to improve the sector This includes a Tourism and Hospitality Accord to set employment standards Developing cultural competency within the workforce Improving the education and training system for tourism Equipping business owners and operators with better tools and enabling better work ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • NZ earns another major digital investment
    Minister for the Digital Economy and Communications Dr David Clark welcomes Google Cloud’s decision to make New Zealand a cloud region. “This is another major vote of confidence for New Zealand’s growing digital sector, and our economic recovery from COVID 19,” David Clark said. “Becoming a cloud region will mean ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Changes to NCEA & University Entrance in response to COVID-19 disruptions
    A package of changes to NCEA and University Entrance announced today recognise the impact COVID-19 has had on senior secondary students’ assessment towards NCEA in 2022, says Associate Minister of Education Jan Tinetti. “We have heard from schools how significant absences of students and teachers, as a result of COVID-19, ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • 60th Anniversary of the Treaty of Friendship between Aotearoa New Zealand and Samoa- “Lifelong Fri...
    Te Reo Māori tauparapara… Tapatapa tū ki te Rangi! Ki te Whei-ao! Ki te Ao-mārama Tihei mauri ora! Stand at the edge of the universe! of the spiritual world! of the physical world! It is the breath of creation Formal acknowledgments… [Your Highness Afioga Tuimalealiifano Vaaletoa Sualauvi II and Masiofo] ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • New law passed to reduce gun harm
    The Government’s commitment to combatting firearms violence has reached another significant milestone today with the passage of the Firearms Prohibition Order Legislation Bill, Police Minister Chris Hipkins says. The new law helps to reduce firearm-related crime by targeting possession, use, or carriage of firearms by people whose actions and behaviours ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Minister sends condolences as last Battle for Crete veteran passes away
    Minister for Veterans, Hon Meka Whaitiri sends her condolences to the last Battle for Crete veteran. “I am saddened today to learn of the passing of Cyril Henry Robinson known as Brant Robinson, who is believed to be the last surviving New Zealand veteran of the Battle for Crete, Meka ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Three Strikes Legislation Repeal Bill passes third reading
    Legislation to repeal the ‘Three Strikes’ law has passed its third reading in Parliament. “The Three Strikes Legislation Repeal Bill ends an anomaly in New Zealand’s justice system that dictates what sentence judges must hand down irrespective of relevant factors,” Justice Minister Kiri Allan said. “The three strikes law was ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government working on preliminary steps to improve support for abuse survivors
    Work is under way on preliminary steps to improve the Government’s support for survivors of abuse in care while a new, independent redress system is designed, Public Service Minister Chris Hipkins says. These steps – recommended by the Abuse in Care Royal Commission of Inquiry – include rapid payments for ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Remarks upon 77th anniversary of the bombing of Hiroshima and Nagasaki
    Remembering Hiroshima and Nagasaki Online Forum 77 years ago today, an atomic bomb was dropped on the city of Nagasaki. Three days earlier, on the 6th of August 1945, the same fate had befallen the people of Hiroshima.  Tens of thousands died instantly. In the years that followed 340,000 ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Govt signs NZ–USA agreement launching new opportunities for space sector
    An agreement signed today between the New Zealand and United States governments will provide new opportunities for our space sector and closer collaboration with NASA, Economic and Regional Development Minister Stuart Nash said. Stuart Nash signed the Framework Agreement with United States Deputy Secretary of State, Wendy Sherman. The signing ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Govt strengthens emergency management cooperation between NZ and the US
    An agreement signed today between New Zealand’s National Emergency Management Agency (NEMA) and the United States’ Federal Emergency Management Agency (FEMA) will strengthen global emergency management capability, says Minister for Emergency Management Kieran McAnulty. “The Government is committed to continually strengthening our emergency management system, and this Memorandum of Cooperation ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand to stay at Orange as winter continues
    New Zealand will remain at the Orange traffic light setting, while hospitalisations remain elevated and pressure on the health system continues through winter. “There’s still significant pressure on hospitals from winter illnesses, so our current measures have an ongoing role to play in reducing the number of COVID-19 cases and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Path paved for communities to reshape streets
    Streets will soon be able to be transformed from unsafe and inaccessible corridors to vibrant places for all transport modes thanks to new legislation proposed today, announced Transport Minister Michael Wood. “We need to make it safe, quicker and more attractive for people to walk, ride and take public transport ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Boost for agricultural and horticultural science in schools
    More young minds eyeing food and fibre careers is the aim of new Government support for agricultural and horticultural science teachers in secondary schools, Agriculture and Rural Communities Minister Damien O’Connor announced today. The Government is committing $1.6 million over five years to the initiative through the Ministry for Primary ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Bumper breeding season boosts Kākāpō population
    Kākāpō numbers have increased from 197 to 252 in the 2022 breeding season, and there are now more of the endangered parrots than there have been for almost 50 years, Conservation Minister Poto Williams announced today. The flightless, nocturnal parrot is a taonga of Ngāi Tahu and a species unique ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Relationship with Malaysia to be elevated to Strategic Partnership
    The relationship between Aotearoa New Zealand and Malaysia is to be elevated to the status of a Strategic Partnership, to open up opportunities for greater co-operation and connections in areas like regional security and economic development. Foreign Minister Nanaia Mahuta met her Malaysian counterpart Dato’ Saifuddin Abdullah today during a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Call for New Zealanders to get on-board with rail safety
    With additional trains operating across the network, powered by the Government’s investment in rail, there is need for a renewed focus on rail safety, Transport Minister Michael Wood emphasised at the launch of Rail Safety Week 2022. “Over the last five years the Government has invested significantly to improve level ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Regional approach the focus at ASEAN and East Asia Summit talks
    The Foreign Minister has wrapped up a series of meetings with Indo-Pacific partners in Cambodia which reinforced the need for the region to work collectively to deal with security and economic challenges. Nanaia Mahuta travelled to Phnom Penh for a bilateral meeting between ASEAN foreign ministers and Aotearoa New Zealand, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • The beat goes on as Government renews support for musicians
    Extension of Aotearoa Touring Programme supporting domestic musicians The Programme has supported more than 1,700 shows and over 250 artists New Zealand Music Commission estimates that around 200,000 Kiwis have been able to attend shows as a result of the programme The Government is hitting a high note, with ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister of Defence to attend Guadalcanal Commemorations in the Solomon Islands
    Minister of Defence Peeni Henare will depart tomorrow for Solomon Islands to attend events commemorating the 80th anniversary of the Battle of Guadalcanal. While in Solomon Islands, Minister Henare will also meet with Solomon Islands Minister of National Security, Correctional Services and Police Anthony Veke to continue cooperation on security ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New programme to provide insights into regenerative dairy farming 
    The Government is partnering with Ngāi Tahu Farming Limited and Ngāi Tūāhuriri on a whole-farm scale study in North Canterbury to validate the science of regenerative farming, Agriculture Minister Damien O’Connor announced today.   The programme aims to scientifically evaluate the financial, social and environmental differences between regenerative and conventional practices. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • More women on public boards than ever before
    52.5% of people on public boards are women Greatest ever percentage of women Improved collection of ethnicity data “Women’s representation on public sector boards and committees is now 52.5 percent, the highest ever level. The facts prove that diverse boards bring a wider range of knowledge, expertise and skill. ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Awards support Pacific women
    I am honoured to support the 2022 Women in Governance Awards, celebrating governance leaders, directors, change-makers, and rising stars in the community, said Minister for Pacific Peoples Aupito William Sio. For the second consecutive year, MPP is proudly sponsoring the Pacific Governance Leader category, recognising Pacific women in governance and presented to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt investment into Whakatāne regeneration reaches new milestones
    Today Economic and Regional Development Minister Stuart Nash turned the sod for the new Whakatāne Commercial Boat Harbour, cut the ribbon for the revitalised Whakatāne Wharf, and inspected work underway to develop the old Whakatāne Army Hall into a visitor centre, all of which are part of the $36.8 million ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government determined to get a better deal for consumers
    New Zealanders are not getting a fair deal on some key residential building supplies and while the Government has already driven improvements in the sector, a Commerce Commission review finds that  changes are needed to make it more competitive. “New Zealand is facing the same global cost of living and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government exceeds Mana in Mahi target
    Mana in Mahi reaches a milestone surpassing 5,000 participants 75 per cent of participants who had been on a benefit for two or more years haven’t gone back onto a benefit 89 per cent who have a training pathway are working towards a qualification at NZQA level 3 or ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government opens new research and innovation hub
    The Government has invested $7.7 million in a research innovation hub which was officially opened today by Minister of Research, Science and Innovation Dr Ayesha Verrall. The new facility named Te Pā Harakeke Flexible Labs comprises 560 square metres of new laboratory space for research staff and is based at ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Unemployment remains low and wages rise despite volatile global environment
    Unemployment has remained near record lows thanks to the Government’s economic plan to support households and businesses through the challenging global environment, resulting in more people in work and wages rising. Stats NZ figures show the unemployment rate was 3.3 percent in the June quarter, with 96,000 people classed out ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • First ever climate adaptation plan lays foundations for resilient communities
    Action to address the risks identified in the 2020 climate change risk assessment, protecting lives, livelihoods, homes, businesses and infrastructure A joined up approach that will support community-based adaptation with national policies and legislation Providing all New Zealanders with information about local climate risks via a new online data ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New mental health and addiction services making a difference for Māori
    Māori with mental health and addiction challenges have easier access to care thanks to twenty-nine Kaupapa Māori primary mental health and addiction services across Aotearoa, Associate Minister of Health Peeni Henare says. “Labour is the first government to take mental health seriously for all New Zealanders. We know that Māori ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Data and Statistics Bill Passes its Third Reading
    A Bill which updates New Zealand’s statistics legislation for the 21st century has passed its third and final reading today, Minister of Statistics David Clark said. The Data and Statistics Act replaces the Statistics Act, which has been in effect since 1975. “In the last few decades, national data and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further moves to improve the lives of disabled people
    The Accessibility for New Zealanders Bill has passed its first reading in Parliament today, marking a significant milestone to improve the lives of disabled people. “The Bill aims to address accessibility barriers that prevent disabled people, tāngata whaikaha and their whānau, and others with accessibility needs from living independently,” said ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the China Business Summit
    Kia ora koutou, da jia hao It’s great to be back at this year’s China Business Summit. I would first like to acknowledge Prime Minister Jacinda Ardern, former Prime Minister Helen Clark, His Excellency Ambassador Wang Xiaolong, and parliamentary colleagues both current and former the Right Honourable Winston Peters, the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further changes to CCCFA Regulations will improve safe access to credit
    Narrowing the expenses considered by lenders Relaxing the assumptions that lenders were required to make about credit cards and buy-now pay-later schemes. Helping make debt refinancing or debt consolidation more accessible if appropriate for borrowers The Government is clarifying the Credit Contracts and Consumer Finance (CCCFA) Regulations, to ensure ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government prioritises firearm prohibition orders to reduce gun harm
    The Firearms Prohibition Order Legislation Bill will be passed through all remaining stages by the end of next week, Police Minister Chris Hipkins said. The Justice Select Committee has received public feedback and finalised its report more quickly than planned. It reported back to the House on Friday.  “The Bill will ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • National plan to protect kauri commences
    The Government has stepped up activity to protect kauri, with a National Pest Management Plan (NPMP) coming into effect today, Biosecurity Minister Damien O'Connor and Associate Environment Minister James Shaw said. “We have a duty to ensure this magnificent species endures for future generations and also for the health of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Support for Samoa’s Climate Change Plan and rebuild of Savalalo Market
     Prime Minister Ardern met with members of Samoa’s Cabinet in Apia, today, announcing the launch of a new climate change partnership and confirming support for the rebuild of the capital’s main market, on the occasion of the 60th Anniversary of the signing of the Treaty of Friendship between Aotearoa New ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Reconnecting with ASEAN and Malaysia
    Foreign Minister Nanaia Mahuta departs for the Indo-Pacific region today for talks on security and economic issues at meetings of ASEAN and the East Asia Summit in Cambodia, and during bilateral engagements in Malaysia. “Engaging in person with our regional partners is a key part of our reconnecting strategy as ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Statement to the 2022 Review Conference for the Treaty on the Non-Proliferation of Nuclear Weapons
    United Nations Headquarters, New York City  Thank you, Mr President. Ngā mihi ki a koutou. I extend my warm congratulations to you and assure you of the full cooperation of the New Zealand delegation. I will get right to it. In spite of the Nuclear Non-Proliferation Treaty and the nuclear ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 10,000 more permanent public homes added under the Labour Government
    A major milestone of 10,037 additional public homes has been achieved since Labour came into office, the Housing Minister Dr Megan Woods confirmed today. “It’s extremely satisfying and a testament to our commitment to providing a safety net for people who need public housing, that we have delivered these warm, ...
    BeehiveBy beehive.govt.nz
    1 week ago