JPMorgan Chase Bank’s New Zealand branch have been given a formal warning by the Reserve Bank for a four-month period in 2013 when it didn’t have appropriate risk assessment measures in place to meet anti-money laundering legislation. The central bank today issued a formal warning to the JPMorgan branch, saying it “has reasonable grounds to believe that for a period of approximately four …
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Greenback slips to third in NZ’s expanded TWI, yuan at second
The US dollar’s weighting has slipped in the Reserve Bank of New Zealand’s new trade-weighted index, which adds the Chinese yuan to a line-up of 17 currencies skewed to Asia and intended to more accurately reflect New Zealand’s modern trade profile. The expanded TWI represents the biggest overhaul of the currency basket since it was introduced in the 1970s as …
Read More »Beijing has allegedly corrupt NZ-resident Chinese in its sights
The Chinese government has its eye on an unknown number of New Zealand-resident Chinese citizens who are thought to have established themselves here with funds obtained through corrupt practices, the Prime Minister, John Key, says. The issue came up in talks between Key and the Chinese president, Xi Xinping, during his three-day state visit to New Zealand last month and …
Read More »NZ economy grows 0.7% in 2Q as surging services make up for weak primary sector
New Zealand’s economy grew just ahead of expectations in the second three months of the year as the fastest growth in the services sector for seven-and-a-half years offset shrinking activity in the primary sector when global commodity prices were coming of highs. Gross domestic product expanded 0.7 percent in the three months ended June 30, ahead of the 0.6 percent …
Read More »Weaker kiwi probably not a game changer for RBNZ yet
The kiwi dollar is holding below levels the Reserve Bank is forecasting for the third quarter though that’s unlikely to be enough to change its view of the interest rate outlook this week. The central bank will keep the official cash rate at 2.5 percent on Thursday, according to a Reuters survey of 16 economists. The bank will hike the …
Read More »New Zealand property values rise at a 7.6 percent annual pace in June
New Zealand property values rose at a 7.6 percent annual pace last month, as demand continued to outstrip supply in Auckland and Christchurch, according to state valuer Quotable Value. Property values stepped up the pace from last month when they increased at a 7.1 percent annual rate, also driven by demand in Auckland and Christchurch. Values increased 2.8 percent in …
Read More »Higher interest rates not the right answer for housing bubble, RBNZ’s Spencer says
The Reserve Bank says raising interest rates now isn’t the right policy response to an overheated housing market and the bank considers restricting low equity home loans as offering the “greatest potential” to curb demand. Deputy governor Grant Spencer told the Business NZ Council in Wellington that the “overheated housing market is a real threat to future financial stability” and …
Read More »RBNZ net buyer of kiwi in May as currency falls 5.6 percent vs. greenback
The Reserve Bank was a net buyer of kiwi dollars in May, a month when the currency sank 5.6 percent against the greenback. The central bank made net purchases of some $90 million in New Zealand dollars in May, according to RBNZ figures. The kiwi dollar dropped to 80.72 US cents from 85.49 cents through May, and recently traded at …
Read More »NZ dollar, down 6.1 percent since last RBNZ meeting, little changed before MPS
The New Zealand dollar was little changed in local trading as investors await Reserve Bank governor Graeme Wheeler’s response to a 6.1 percent slide in the currency against the greenback since his last review. The kiwi traded at 78.76 US cents at 5pm in Wellington from 78.65 cents at 8am and 78.80 cents yesterday. The trade-weighted index fell to 73.45 …
Read More »NZ business gains from lower kiwi this year may be short lived, survey shows
Companies expecting to benefit from a lower New Zealand dollar may get only a short reprieve as the kiwi appreciates towards the end of the year buoyed by the prospect of an improving economy and higher interest rates, according to a BusinessDesk survey. The local currency has dropped about 5 percent this year as improving data out of the US …
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