The Government has released concrete details about the new Bank Deposit Guarantee Scheme, specifically about its Wholesale deposit section. Of the most interest in the new set of details is discussion on the pricing of the so called New Zealand Wholesale Funding Guarantee Facility, which can be read here. It seems that the Wholesale Guarantee Scheme has been priced above that of the Australian and American equivalent, although it is below that of Canada. The fees that are charged on the use of ... Read More

Latest figures have officially confirmed the recession in New Zealand. Figures released on the 26th of September show a GDP shrink of 0.2 percent for the June quarter of 2008. Combined with the March quarter drop of 0.3 percent, the technical definition for an economy in recession, two consecutive quarters of economic falls, has been met. The cause of the second quarter of contractions has been pinned to tightened credit conditions, lowered domestic spending and a draught affected agricultural industry. It has been ... Read More