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 ... Read More

New Zealand banks are yet again beginning to cut their interest rates in anticipation of the April 11th Reserve Bank Official Cash Rate (OCR) review. Leading the foray in pre-OCR cuts is Kiwibank, being the first to announce on the 19th of February that they would yet again be reducing rates. They were soon followed by Westpac Bank, other banks are yet to make similar statements. The Kiwibank variable home interest rate has been reduced from 6.49 to 5.99 percent. As early as ... Read More

Several prominent New Zealand banks have cut their home loan rates in anticipation of a January 29 Official Cash Rate (OCR) cut. ANZ National Bank, BNZ and Kiwibank have all cut their home loan rates on the 14th and 15th of January, other banks are expected to follow. It is expected by many that the New Zealand reserve bank will cut the OCR by another percentage point in its next meeting. The current rate is 5%. Westpac bank went so far this week ... Read More

Analysts are beginning to warn of possible deflation dangers. Amidst interest rate cuts from around the world, some analysts are predicting possible deflation in the coming future. Technically, deflation is the opposite of inflation, it is the increased valuation of money, leading to falling prices and decreased economic activity. Subsequently it can lead to increased reliance on debt and in general an unpleasant economic outlook. At the early stages of the current economic downturn, arguments for or against possible deflation are likely to be ... Read More