Kapiti Financial Advice Limited – KiwiSaver and Investment
Today’s Quarterly Survey of Business Opinion release has provided the first opportunity to gauge the sentiment of economists towards the present easing cycle in the wake of a challenging environment – uncertainty over the pace of easing in the US following signs of a resilient US labour market, the dilemma posed by President-elect Donald Trump’s … Read more
The Reserve Bank have lowered the Official Cash Rate by 50 basis points today as expected. A lot of this was already priced-in by the wholesale markets, as the Reserve Bank observed in their accompanying Monetary Policy Statement. They noted that short-term wholesale rates have fallen since the August Statement, but long-term rates have increased. … Read more
Global sharemarkets rose in June, led higher by the US sharemarket, with US US technology companies continuing to lead the way. European markets fell amidst heightened political uncertainty across Europe. NZ’s sharemarket fell -1.2%, reflecting the ongoing weakness in the local economy. Companies exposed to the local economy continued to underperform. Australian equities rose 1.0% … Read more
The RBNZ kept the OCR unchanged at 5.5%, as was universally expected. The focus of attention is whether the first cut will come in November, or whether the Bank will wait until February. The final review this year will be on the 27th November. The next review is not until 19th February 2025. So, there … Read more
A tale of two million-dollar cities The Real Estate Institute of New Zealand (REINZ) recently released their property market report for the month of September 2021. The median house price in the Wellington region increased by 13.7% over the year to $845,000. This was slightly lower than the August median price and is part of … Read more
COVID-19 restrictions had little impact on property prices in September The Real Estate Institute of New Zealand (REINZ) recently released their property market report for the month of September 2021. The data continues to reflect a tight market in which demand is still strong, amidst a pick-up in activity in those areas where lockdown restrictions … Read more
A number of factors suggest that the Reserve Bank is backing away from further cuts in the Official Cash Rate next year, as had been previously foreshadowed. This doesn’t mean that bank lending rates are on hold, rather the Reserve Bank is putting more reliance on another transmission mechanism – the new Funding for Lending … Read more
Today the Reserve Bank released its August Monetary Policy Statement, noting that accommodative monetary policy is complementing fiscal policy by reducing interest rates. There will continue to be downward pressure on interest rates as the Reserve Bank continues to provide support to the economy, in the midst of an environment where inflation and inflation expectations … Read more