Monthly Archives July 2009

OCR to Stays the Same

July 30, 2009 New Zealand Finance  No comments

The New Zealand Official Cash Rate experienced no cuts or additions in its 30th of June review.

For the second review in a row Reserve Bank Governor Alan Bollard has opted not to increase the Official Cash Rate (OCR) of New Zealand. The change came as no big surprise to commentators or market participants, with no movements of particular note to be seen on the foreign exchange or equity market.

In regards to the decision, Alan Bollard, in a Reserve Bank release said “Despite signs of a leveling off in economic activity, the economy remains weak. We continue to expect to see a patchy recovery get underway toward the end of the year, but it will be some time before growth returns to healthy levels...

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Cash Rate Looks Set to Stay

July 28, 2009 New Zealand Finance  No comments

Analysts outlook has predicted that the Reserve Bank will not make any further cuts to the Official Cash Rate (OCR) in its July 30th revision.

The New Zealand OCR as set by the Reserve bank is currently at 2.5%. With an end seemingly in sight for New Zealand and the recession it is now facing, there is no obvious need for further reductions in the OCR, which is already at a record low level.

A survey conducted by Reuters of 16 analysts has resulted in 15 voicing an opinion that there will not be a further cut on the 30th of July. Only one projected a decrease of 25 basis points.

It was voiced that the economy seems to be on the verge of a state of recovery, which entails the Reserve Bank holding some concerns regarding possible side-effects of debt based purchasing as is seen currently in...

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Tax Cases Wont Influence Bank's Ratings

July 23, 2009 New Zealand Taxation  No comments

Both Moody’s and Standard & Poor’s credit rating agencies have affirmed that they will not be changing their outlook on the New Zealand banks involved with tax payback cases.

Following a High Court decision in which BNZ bank was found liable to pay $416 million in unpaid taxes and a possible $238 million in use of money interest, thoughts have been centered around how this would affect the banking institution. ANZ bank, Westpac and the owner of ASB, the Commonwealth Bank of Australia are all also entangled in discussion with the Inland Revenue Department about owed taxes.

Moody’s Sydney-based assistant vice-president Marina Ip stated that while significant, the decision would not see the bank pay more than 60% of its expected yearly pre-tax earnings...

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Tax Cases Wont Influence Bank’s Ratings

July 23, 2009 New Zealand Taxation  No comments

Both Moody’s and Standard & Poor’s credit rating agencies have affirmed that they will not be changing their outlook on the New Zealand banks involved with tax payback cases.

Following a High Court decision in which BNZ bank was found liable to pay $416 million in unpaid taxes and a possible $238 million in use of money interest, thoughts have been centered around how this would affect the banking institution. ANZ bank, Westpac and the owner of ASB, the Commonwealth Bank of Australia are all also entangled in discussion with the Inland Revenue Department about owed taxes.

Moody’s Sydney-based assistant vice-president Marina Ip stated that while significant, the decision would not see the bank pay more than 60% of its expected yearly pre-tax earnings...

Read More