NewsBites

ASB Economic Update: Weak NZ Growth to Keep RBNZ Comfortably on Hold

Wednesday, 21^st June, 2017

ASB Economic Update: Weak NZ Growth to Keep RBNZ Comfortably on Hold

• There has been a NZ GDP growth sub-trend for two consecutive quarters, weaker than the RBNZ expected. 
• RBNZ to retain a neutral bias at this week’s OCR review, but tweak NZD language due to the higher TWI.
• Federal Reserve hikes rates but weak wage growth is coming under closer scrutiny. 

Changes in the employment space to be aware of:

Wednesday, 21^st June, 2017

Changes in the employment space to be aware of:

The first is an increase to the maximum parental leave payment rate, from $527.72 per week to $538.55 per week (gross). The adult minimum wage increased to $15.75 on 1 April 2017.
This means that the minimum rate of the parental leave payment will increase from $152.50 to $157.50.
The second is a new Act the Care and Support Workers (Pay Equity) Settlement Act 2017.
The Act, which comes into force on 1 July, implements the settlement reached by the Crown with relevant unions (E Tū, PSA, CTU, Nurses’ Organisation), ACC and 20 DHBs. I

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New toilets provide comfort for communities & visitors

Wednesday, 21^st June, 2017

New toilets provide comfort for communities & visitors

Small communities across the country will be better placed to respond to growing visitor numbers following the announcement that the Government will invest $5.2 million in 28 new infrastructure projects – almost all toilets.
The South Canterbury Chamber of Commerce welcomes the investment, which will benefit regions from Northland to Central Otago, and specifically sees support funding for the Mackenzie District.

ASB Economic Update: Financial Stability Report still eyeing up some distant dark clouds

Wednesday, 7^th June, 2017

ASB Economic Update: Financial Stability Report still eyeing up some distant dark clouds 

The RBNZ’s Financial Stability Report last week brought with it the welcome news that risks to the NZ financial system have reduced over the past 6 months. 

• The RBNZ’s Financial Stability Report sees a reduction in risks to the NZ financial system. 
• But the RBNZ is still wary of housing and dairy risks, and progressing with creating a housing debt-to-income restriction.
• In a busy week data-wise, the standout event is the UK election on Thursday.