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Finance – The RBNZ cuts 50bp, as telegraphed. And they have lowered the OCR track – 3% here they come – Kiwibank

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Source: Kiwibank
Yes, the RBNZ cut 50bps today, as expected.  RBNZ officials have proven to be nibble, again, and thankfully.  The economy needs help. 
But the main message from today’s MPS is the lowering (again) of the OCR track. The RBNZ are signalling more cuts, sooner. The RBNZ has effectively matched market pricing, and moved closer to our long-held view of a 3% terminal rate.  There’s only 10bps between us now. It pays to be stubborn. And we agree with the move. We’re all on the same page, now.

Here’s the key dates: the OCR track implies a 25bp cut in April and May to 3.25%. And then there is a welcome drop to 3.14% to end the year. And the track flatlines at 3.1% out to 2028.  That’s the RBNZ’s way of saying there’s a 60% chance they go from 3.25% to 3%.  You know, it’s kind of needed, but we not quite there yet. In time, they should get to 3%.  And the risks are to the downside. 

We must point out that a 3.75% cash rate remains well above estimates of neutral – which are close to 3%.  So interest rates remain at levels that restrain demand. And after a severe recession, it’s hard to justify. We have rising unemployment and inflation rangebound near target. Job done. Release the break and put it in neutral.  If anything, the RBNZ may need to stimulate, by putting the economy in drive, tapping the accelerator, and cutting below 3%.

The REALLY good news is that RBNZ has tamed the inflation beast. And it is time to drag the economy out of recession.  With more interest rate cuts on the way, we see the economy recovering in 2025. Rate cuts are feeding through fast, with 81% of mortgages fixed for less than a year.  That points to a firmer recovery in the second half of 2025. Along with gains in the housing market. And of course, 2026 is looking better than 2025, which will be a lot better than 2024.

It’s a confidence game. It’s all about confidence. And we expect the lift in confidence to persist, and eventually feed into activity, profitability, hiring and investment. We’re more confident in the recovery.

MIL OSI

Real Estate – Ark for sale in New Zealand – NZSIR

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Source: New Zealand Sotheby’s International Realty (NZSIR)

Noah’s Ark is now up for sale in Christchurch, New Zealand.

The distinctive property – believed to be the only ark for sale in the world – is expected to attract international interest.

Listed by leading real estate agency New Zealand Sotheby’s International Realty (NZSIR), the (approximate) 860 sq m Ark is nestled upon Clifton Hill in Sumner and features three levels with amenities such as a grand ballroom, two expansive commercial kitchens, several entertaining spaces, and a large basement.

NZSIR sales associate Rod Cross says the Ark – located at Lot 4, 4 Loader Lane – is one of the most intriguing and unconventional properties in NZ.

“The dwelling was built in the early 2000s as a function centre and has been utilised for multiple purposes, from a church and wedding venue to tearooms and a private residence,” Cross says. “The building itself is incredible with its grand, nautical design and exquisite craftsmanship.”

The Ark was a central feature of the renowned Gethsemane Gardens, which has more recently been developed into the high-end subdivision, Gethsemane Heights. The building’s three separate levels each present a blank canvas that can be structured into spaces to suit any lifestyle.

“The beauty of this building is that it’s an opportunity for a visionary, and a chance for the next owner to realise a dream,” Cross adds. “It certainly has ample space and versatility for many options to be considered.”

Vaulted ceilings, exposed timber beams, and picture windows invite natural light while showcasing views of the Southern Alps and Pegasus Bay.

The Ark was part of the Gethsemane Gardens sale in 2016 and, since being subdivided, this is the property’s first time to the market in its own right.

“We’re sailing into new territory with this exceptional property, and expect worldwide interest,” says Cross. “It presents a chance to create something extraordinary.”

The Ark will be sold via auction on Friday, March 28 at 4pm.
  
About New Zealand Sotheby’s International Realty                    
New Zealand Sotheby’s International Realty (NZSIR) is a specialist agency that focuses on the sale of premium property through quality marketing and global networking. Founded in 2005 by Mark Harris and Julian Brown, the NZ branch of the global company has 27 offices nationwide – Northland, Auckland Ponsonby, Auckland North Shore, Auckland Remuera, Auckland Eastern Bays, Auckland South East, Waiheke Island, Hamilton, Cambridge, Rotorua, Taupō, Napier, Ahuriri, Havelock North, Palmerston North, Masterton, Greytown, Kapiti, Wellington, Hutt Valley, Nelson, Marlborough, Christchurch, Wānaka, Arrowtown and its head office in Queenstown. It also has an Australian office in Melbourne, Victoria.  

NZSIR is part of Sotheby’s International Realty – the world’s leading luxury real estate company – with a global network of approximately 1,110 offices and more than 26,000 affiliated independent sales associates throughout 84 countries and territories. It is through this unparalleled luxury network that NZSIR is able to access and market properties on an international level. In 2022/2023 NZSIR was named Best International Real Estate Agency Asia Pacific (5-20 offices) at the International Property Awards.                  
www.nzsothebysrealty.com    

MIL OSI

Detour for Greymouth drivers next Wednesday – overnight

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Source: New Zealand Transport Agency

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Greymouth’s High St (SH6) will be closed between Shakespeare St and Morice St next Wednesday night, 26 February, says NZ Transport Agency Waka Kotahi (NZTA).

The highway will be resurfaced between 8 pm and 6 am, weather permitting.

NZTA thanks everyone for taking it slowly on the local road detour along Shakespeare and Marlborough Sts overnight as this key piece of sealing is done before winter.  (See map below)

Residents will have access at all times, but people are asked not to park their cars on this section of High St on Wednesday after 8 pm.

If it is wet, work will switch to the next dry night eg Thursday, 27 February, same times overnight.

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MIL OSI

NZers didn’t need this much pain to reduce OCR

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Source: Green Party

Today’s OCR cut will fail to soothe the long-term pain Christopher Luxon’s Government is inflicting upon our communities. 

“Luxon’s Government had options to cool demand in the economy. Instead of sharing resources around so everyone could get through the hard times, they threw jobs, public services and livelihoods on the scrapheap,” says Green Party co-leader and spokesperson for Finance Chlöe Swarbrick. 

“The collateral damage of Christopher Luxon and Nicola Willis’ decisions mean more inequality, more homelessness, more climate-changing emissions, more inequality and more long-term issues. Maybe that’s what they mean by ‘going for growth’?

“While today’s OCR announcement is good news for everyone with a mortgage, it’s critical to understand the unnecessary collateral damage created by the Government’s chosen path of destruction. Those wounds won’t heal quickly or by themselves.

“Monetary policy, the setting of interest rates, is a blunt instrument. It’s fiscal policy, the Government’s choices on tax and spend – which dictates who wins, and who loses in our economy.

“New Zealanders are voting with their feet and leaving in record numbers. They’ve given up playing by made-up rules that benefit wealth accumulation of the few over the work of the many.

“A different world is possible. We can have an economy that works for people and planet, instead of exploiting both,” says Chlöe Swarbrick. 

MIL OSI

UPDATE: Crash closes State Highway 6 near Murchison (SH6 is now OPEN)

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Source: New Zealand Transport Agency

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UPDATE: 2:25 pm:
The crash site has been cleared and State Highway 6 has reopened in both directions.

Some delays are possible as queued traffic clears.

 1:25 pm:

Drivers travelling on the inland route between Nelson and Springs Junction can expect delays while emergency services attend a crash that has closed State Highway 6 near Murchison.

The highway is  currently closed at the intersection of State Highway 65 near Fern Flat and the Upper Buller Gorge(O’Sullivan’s Junction).

The crash, involving two cars, was reported at around midday. Emergency services and contractors are at the scene.

Drivers are asked to avoid the area and delay their travel until the crash is cleared and the highway reopened. No local road detours are available

Further updates will be provided when available.

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MIL OSI

UPDATE: Wellington drivers, expect delays following crash in the Terrace Tunnel (Tunnel now fully OPEN)

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Source: New Zealand Transport Agency

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UPDATE: 2:10 pm
The Terrace Tunnel is now open in both directions.

NZTA/Waka Kotahi and the Wellington Transport Alliance thank drivers for their patience and cooperation while this incident was resolved.

UPDATE 1:55 pm:

The Terrace Tunnel is now open to northbound traffic. It remains CLOSED to southbound traffic.

Southbound traffic must continue to detour via Terrace Offramp onto The Terrace onto Ghuznee Street onto Victoria Street onto Vivian Street.

1:45 pm:

Wellington drivers can expect delays heading into the CBD following a crash in the Terrace Tunnel on State Highway 1 this afternoon.

The tunnel is currently closed in both directions following a crash reported around one o’clock this afternoon.

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MIL OSI

Government must keep cutting to keep interest rate relief coming

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Source: ACT Party

The Government must keep cutting to keep the interest rate relief coming, says ACT Leader David Seymour in response to a 0.5 point cut in the Official Cash Rate.

“Households who’ve done it tough through a cost-of-living crisis are seeing their sacrifices pay off. Today’s good news can be credited in part to New Zealanders’ financial discipline, which has eased inflation and made mortgage relief possible,” says Seymour.

“The Government has been doing its part too, reining in Labour’s spending commitments. But we need to do more. The households paying the bills deserve a government that’s as disciplined as they are.

“We can’t expect to coast our way to ongoing interest rate cuts. We need persistent action from Wellington to keep cutting the waste, and ACT is continuously putting ideas forward.

“Less waste and lower interest rates means firms, farms, and families can keep more of their own money, to spend and invest on their own priorities. That is how we achieve real prosperity and economic growth.”

MIL OSI

Growing economy good for jobs and opportunities

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Source: New Zealand Government

The Reserve Bank’s positive outlook indicates the economy is growing and people can look forward to more jobs and opportunities, Finance Minister Nicola Willis says. 

The Bank today reduced the Official Cash Rate by 50 basis points. 

It said it expected further reductions this year and employment to pick up in the second half of the year. 

“This is good news for New Zealanders. A growing economy means more money in people’s pockets, more jobs and more opportunities,” Nicola Willis says.

“The Government knows many families and businesses are doing it tough, but evidence is mounting that they can look forward to better times.  

“Today’s reduction in the Official Cash Rate is the fourth since August last year and confirms inflation is firmly back under control. 

The rate has now fallen 1.75 points since August to 3.75 per cent. Further reductions will put more downward pressure on interest rates. 

“That is good news for businesses as well as families. More money in people’s pockets means more money flowing through tills.

“There are signs that that is already beginning to occur. 

“Business and consumer confidence are both trending upwards and last week the BNZ and Business NZ reported that growth in manufacturing had risen to its highest level since September 2022.

“After a period of decades-high inflation, high interest rates and cost-of-living pressures, the economy is heading in the right direction.” 

MIL OSI

Finance – ASB lowers variable rates for personal, business and rural customers

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Source: ASB

ASB is dropping variable interest rates across personal, business and rural lending by 0.50%, passing on today’s Official Cash Rate (OCR) cut in full.

ASB’s Executive General Manager Personal Banking Adam Boyd says, “In the past six months, we’ve reduced our variable rates by nearly 2%, and we’re pleased to be passing on today’s OCR cut to all customers who hold a floating loan with us.  We dropped rates on a number of our fixed home loan terms last week and we have highly competitive rates on the six, 12- and 18-month terms which are currently the most popular amongst our customers.”

The OCR decrease is also being reflected in some of ASB’s savings rates. Savings On Call will move to 1.15% while ASB’s youth account, Headstart and its bonus saver account Savings Plus will both shift to 3.15%.

“An easing interest rate cycle can mean different things for home or business owners and savers. Our teams are here to support any customers who want to discuss their options.”

 

Home Loan* 

Current Rates 

New Rates 

Rate Change 

Housing Variable 

7.39% 

6.89% 

– 0.50% 

Orbit Variable

7.49% 

6.99% 

– 0.50% 

Back My Build 

4.94% 

4.44% 

– 0.50% 

Note – Back My Build applications are no longer open to new customers. 

*These changes are effective from Friday 21st February 2025 for new lending customers, and Friday 28th February 2025 for existing lending customers.

 

Business Loan*

Current Rates

New Rates

Rate Change

Business and Rural Floating Base Rate

5.69%

 

5.19%

 

– 0.50%

Business Base Rate

12.52%

12.02%

– 0.50%

Rural Base Rate

9.76%

9.26%

– 0.50%

Corporate Indicator Rate

6.93%

6.43%

– 0.50%

Special Purpose Base Rate

5.50%

5.00%

-0.50%

* These changes are effective from Thursday 27th February 2025 for both new and existing customers.

 

Savings 

Band 

Current Rates 

New Rates 

Rate Change 

Savings On Call & ASB Cash Fund 

All Balances 

1.65% 

1.15% 

– 0.50% 

Savings Plus 

No Bonus 

1.20% 

0.70% 

– 0.50% 

Partial Bonus

1.30%

0.80%

– 0.50%

 

Full Bonus

3.65%

3.15%

– 0.50%

Headstart

All Balances

3.65%

3.15%

– 0.50% 

*These changes are effective from Friday 28th February 2025 for new and existing customers

 

ASB has practical information for customers on the current interest rate environment available on its website as well support to help customers take control of their financial wellbeing and achieve their goals at its Financial Wellbeing Hub: https://www.asb.co.nz/banking-with-asb/financial-wellbeing.html

MIL OSI

Health Crisis – New crisis working group a sign of desperation by Health Minister – PSA

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Source: PSA

The Government’s setting up of a crisis health working group won’t help a failing health system unless increased investment is urgently made.
The so-called health assurance unit will operate within Te Kawa Mataao Public Service Commission.
“This is a crisis of the Government’s own making and the unit is another sign of desperation,” said PSA acting national secretary Fleur Fitzsimons.
“The PSA says the answer is simple. Stop the cuts, lift the hiring freeze and fund health properly.
“The health system is being starved of funds by a Government which has chosen saving dollars over saving lives, tax cuts over a properly funded health system.
“That’s why the PSA has filed urgent legal proceedings with the Employment Relations Authority to stop the planned cuts.
“This all comes on top of three high profile resignations including the Health NZ CEO and Director General of Health.
“It’s time for action, not a working group, before frontline health services are further eroded and patients suffer.”

MIL OSI

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