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NZ dollar tumbles despite interest rates hike
The NZ dollar has tumbled this morning, after Reserve Bank governor Alan Bollard signalled that future interest rate rises will be more modest than earlier indicated.
The NZ dollar has tumbled this morning, after Reserve Bank governor Alan Bollard signalled that future interest rate rises will be more modest than earlier indicated.
Bollard's statement carried a thinly veiled warning about the consequences of passing on GST increases.
Lending to the destitute and desperate is a risky business - for both parties - but what sort of profit margins does the average loan shark achieve?
The NZ dollar climbed to a six-month high as a surge in new home sales in the US stoked investors' appetite for higher-yielding, or riskier, assets.
It's clear the economy has become dependent on the debt growth fuelled by the housing market's ever-increasing values.
The New Zealand dollar may advance as traders eschew an out-of-favour greenback and seek growth assets Downunder this week.
NZers will look back on the winter of 2010 as the moment we finally realised the last decade of growth was a sham.
Economists expect the Reserve Bank will raise interest rates further late this month, despite lower than expected inflation figures.
House prices firmed up last month, but turnover stayed low said the Real Estate Institute.
The NZ dollar peeked above US71c for the first time since late June as good economic data from the US and Australia restored faith in the global economic recovery.
Kiwibank had slowing growth and shrinking margins in the March quarter, says KPMG.
The New Zealand dollar gained on a weakening greenback after comments from the Reserve Bank of Australia yesterday spurred traders' appetite for high-yielding currencies.
Kiwibank, which led its rivals in cutting two-year fixed home loan rates last week, has now followed them by reducing its three, four and five year rates.
Westpac economists expect house prices to fall about 2 per cent this year and another 2 per cent next year.
House prices will fall gently for the next two years before levelling out, says a leading bank economist.
In a new statement of intent, the Reserve Bank says it is looking at new tools to support the traditional Official Cash Rate.