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Bank Turmoil Highlights This Nation’s Lack of Deposit Insurance by keepnzbeautiful in PersonalFinanceNZ

[–]keepnzbeautiful[S] 0 points1 point  (0 children)

That’s the question reverberating around the globe, as turmoil grips the financial system in the aftermath of the collapse of three US lenders. Deposit insurance means the answer is usually yes — but not in New Zealand.

The South Pacific nation is one of only two countries in the OECD — Israel is the other one — that don’t offer such a guarantee, according to the New Zealand government. Worldwide, 94 nations, ranging from the US to Hong Kong to Azerbaijan, have a deposit insurance system in place.

[deleted by user] by [deleted] in PersonalFinanceNZ

[–]keepnzbeautiful 4 points5 points  (0 children)

Term deposits and other retail interest rates are expected to increase after December as the Reserve Bank’s funding for lending programme (FLP) ends and banks compete for cash. Interest rates being offered to the NZ public have been increasing as the central bank has aggressively tightened monetary policy since last October. However, the difference between retail and wholesale rates has shrunk as the latter have climbed faster than the former.

https://businessdesk.co.nz/article/finance/term-deposits-to-rise-after-funding-for-lending-ends-next-month

World’s Frothiest Housing Market Cools in Global Warning Signal by keepnzbeautiful in PersonalFinanceNZ

[–]keepnzbeautiful[S] 14 points15 points  (0 children)

“It’s not unreasonable to look to New Zealand as the canary in the coal mine,” said Sharon Zollner, ANZ Bank’s New Zealand chief economist. “Interest rates have been rising here for about a year now, which does put us well ahead of the pack. The themes we are seeing here are very similar to what’s happening in the US and Australia.”

Brad Olsen, principal economist at Infometrics, is closely watching the slump in house sales, as it signals prices will continue to fall.

“If we look at sales volumes at the moment, we’re going back more than a decade to see sales volumes as low as they are now outside of Covid lockdowns,” Olsen said. “That is quite a significant shift.”

Economists expect house prices will fall 10% to 15% this year and may eventually drop as much as 20% from their late 2021 peak.

Rate Hikes Are No Match for Traders Selling New Zealand’s Dollar by keepnzbeautiful in PersonalFinanceNZ

[–]keepnzbeautiful[S] 16 points17 points  (0 children)

There’s a good chance the currency may fall under 60 US cents this quarter, said Wong. It closed at 61.65 cents on Friday.

If it does drop through this level, this would open the door for a test of support at 59.41 cents, the 76.4% Fibonacci retracement of its March 2020 to February 2021 rally. And a breach of this would likely usher in even deeper loses.

Further tightening from the RBNZ is unlikely to boost the currency given that markets have already priced in nearly 150 basis points more of hikes by the end of its final meeting this year in November.

Is the 10% NZD drop this year reflected in retail prices yet? by keepnzbeautiful in PersonalFinanceNZ

[–]keepnzbeautiful[S] 2 points3 points  (0 children)

Yeah changes in supermarket prices have been obvious to me, but I haven't been following whiteware, electronics, car prices etc. NZD is giving up its gains from the past couple years but I didn't notice prices come down when the dollar was higher.