Modest rise in consumer confidence but households set for disposable-income boost as mortgage rates fall
The Westpac McDermott Miller Consumer Confidence index rose two points to 91.2 in the June quarter.
Westpac senior economist Satish Ranchhod said it was a modest rise
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NZ Herald
17 hours ago
- NZ Herald
ASB profit dips as staffing rises, $33m set aside for customer compensation
She said the increase in staffing levels wasn't a one-off that would be unwound as projects were completed. Rather, the investment was a 'continuation of a theme you've seen with ASB over the years'. ASB's expansion comes as the Australian Financial Review reports Westpac Group made 790 staff redundant in the past two months, and ANZ's new group chief executive talking up the need for a slimming of the company and more efficient ways of working. Neither Westpac nor ANZ would tell the Herald whether jobs would be cut in New Zealand. 'Westpac NZ operates as a separate entity to Westpac's Australian operations with a unique culture that supports our New Zealand customers and employees, however we welcome their focus on change and transformation,' a Westpac spokesman said. 'We continually review how we operate, and the composition of our workforce changes periodically as we adapt to meet customer demand and business requirements. 'We'll be able to provide a full view of any movements up or down at our full-year results in November.' Coming back to ASB, the other expense it flagged was A$33m ($36.18m) in customer 'remediation provisions'. Shortt declined to elaborate on why the bank had put money aside to potentially reimburse customers for a mistake, or various mistakes, the bank has made. She said it was standard practice for the bank to notify regulators if it believed there was a breach, before looking to rectify the issue and pay out customers. An A$33m payout to customers would be material for ASB. Shortt clarified this provision was unrelated to the class action, currently before the courts, taken against ASB and ANZ for disclosure breaches dating back to the mid-2010s. ASB increased its mortgage lending by 7% and its business and rural lending by 2% in the year to June. The value of its interest-bearing customer deposits also rose by 3%. ASB's net interest margin inched up by 4 basis points to 2.27%, as it increased margins on its home lending. Shortt said ASB customers hadn't shifted their money around since the Reserve Bank-administered Depositor Compensation Scheme became operative on July 1. The scheme ensures up to $100,000 per depositor, per institution is guaranteed. This means that if someone had $200,000 of savings at a bank that collapsed, they would get $100,000 under the scheme. Shortt said the Government hadn't consulted with ASB on the possible introduction of a new bank tax or levy, further to Finance Minister Nicola Willis seeking advice from government officials on this. Jenée Tibshraeny is the Herald's Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
The Spinoff
21 hours ago
- The Spinoff
A non-comprehensive list of things worth saving up for
A bunch of people at The Spinoff (and some of our kids) on the things we've saved for. From beach trips, babies, bikes and books to plants, pants and Pokémon cards, savings goals can be smart, silly, maybe even a little bit shallow. This list covers all the bases. A mountain bike I grew up riding bikes constantly. Every weekend a neighbour friend and I rode up Makara Peak and 'did jumps' down the big concrete steps at the teachers college. But I didn't have my own bike. With eight older siblings, there was no way my parents were buying me a bike after they bought my older sister one already (I rode it more than her) and my older brother one a decade earlier (which we all learned to ride as our first bike). My friend had money, and he got a new bike seemingly every Christmas that I would beg for a turn on. So when I got a paper run in intermediate, my $120 fortnightly paycheck went to three things: hot chips, dairy lollies and saving for my own bike. I researched bikes constantly, weighing up how much I could stomach spending as an 11-year-old vs how cool I wanted my bike to be. I kept an eye on every sale at the big bike stores and finally, six months after I started earning my own money, I bought my own Avanti mountain bike. It was light blue, had disc brakes, front suspension, was a little bit big for me to grow into, and was on special for $599. It was perfect. I felt sick handing literally all of my money over but I rode that bike into the ground for years, used it to commute to college for a while, and eventually sold it to a local kid when I went to university. / Mad Chapman Art stuff I'm saving for a giant play kitchen and ice cream. As an adult, I'll save for a phone, a phone case and a computer. I want to be an artist or a book writer – so I'll need to buy paper and art stuff too. [I'll also need to hire] a bus driver to drive my rainbow bus. / Desi (age 5) An emergency fund I grew up in a frugal household, so I have a pretty anxious relationship with money. While I tend to spend a lot on things I like, I hate the feeling of being in a position where I don't have a safety net. So I started a savings account that is not very visible to me. I transfer money every now and then in case life throws me a curveball. So yeah, I'm saving for a curveball. / Isaiah Tour Saving for an emergency fund, holiday, car, wedding or big appliance? A Westpac Bonus Saver account allows you to grow your savings, get bonus returns and access your money anytime. Increase your balance by $20 a month and you'll get bonus interest. A Euro summer To this day, the most amount of money I've ever spent at one time was on my first overseas trip when I was 18. I mopped floors and served burritos (in a restaurant that now no longer exists, rest in pieces Zambrero K Road) for three years through high school so I could finally get out of this stupid milkloving piece of shit dumbass mean spirited sale at Briscoes racist sexist 40% off deck furniture piss country and perhaps experience some culture. I remember going to a travel agent after saving my first $3,000, booking my return flights and feeling both dazed that doing something so big could be so easy, and incredibly amazed that I actually managed to get to that point after growing up with such a big scarcity mindset. Suffice to say I had the best ever time blowing my hard-earned cash on cheap piss almost every night on a two-week Contiki tour then making up for my sins with a two week solo trip checking out the art and history in Rome and Paris. I was saying to a friend who grew up in a similar financial situation recently, that not being born into wealth means you walk the world with limitations built into your brain: I cannot have this thing, because it was never meant to be mine anyway. Experiencing true financial freedom like that really made a massive difference to my self-confidence and my ability to dream. / Lyric Waiwiri-Smith Gaming stuff I have been saving real money for a long time now. I'm saving for Robux. I don't really know what I would save for as an adult. Oh… a VR headset! And a house. If I'm going to be a gamer, I will need to save a lot for gaming stuff and a green screen. / Milo (age 8) A drum machine I knew time was running out. With our first baby due, I desperately wanted one last hobby hurrah. I'd fixed my sights on an Elektron Digitakt, a $2,000 drum machine, my final stand against impending time constraints. Every spare dollar, every skipped luxury, went into that fund. The day I finally bought it felt like pure victory. For a week, I was lost in its beats, a brief, blissful escape. Then, we came home to a kicked-in door. My new Digitakt was gone, lost to a robbery. The sting was immense, a cruel end to my creative dream. But the story had one last twist. The insurance money, meant to replace my stolen gear, ended up buying something far more essential: a child seat. My last grasp at personal freedom was transformed, ironically, into a necessity for the very life that had prompted my desperate purchase. A stark, undeniable surrender to the new reality. / Guy Annan Clothes (that I get to pick) When I was little, I never got to choose my clothing. It was all hand-me-downs. Last year I decided I wanted to choose my own clothes especially because I'm going to a high school that doesn't have a uniform. I started looking online and in stores and created a plan for saving: pocket money, extra chores, a few cake stalls. So far, it's going well. I've saved nearly $100. / Tessa (age 12) Saving for a cool outfit, funky manicure or gig tickets? A Westpac Simple Saver account offers uncomplicated savings with access anytime. A great option if you're just starting out with saving.* Christmas I'm not really saving for anything. Oh actually, maybe a Christmas present for myself, but I dunno. As an adult maybe I'll save for a house, a phone, a car. You need lots of things as an adult. / Henry (age 9) Albert, the love of our lives In 2021, my now husband and I decided to go all-in and combine our families. Which meant four kids under one roof – very expensive. We started thinking about the things we wanted as a family – holidays, treats, schooling, a dog. We really wanted that last one, so we started saving. Browsing on Trade Me one sunny afternoon, there he was, last of the litter, a little guy who the breeder thought was too small. Having that money saved meant when Albert's wee face popped up, we were able to make a quick decision. Albert is the absolute best dog, he has gotten all of us through some hectic times. We would not be us without him. He loves coming to The Spinoff with me and brings beautiful joy to people's hearts. Pretty bloody priceless. / Bec Murphy Investments I'm saving to invest in some company's [companies] and to buy a valuable Pokémon card. I hope to grade it and then have the price go up. / Wynn (age 10) My first motorbike In my early 20s I was working at my first Real Grown Up Job in publishing. I was making barely minimum wage and had recently given up my previous favourite sport due to a gnarly knee injury. My boyfriend was interested in taking up off-roading, and managed to score an ancient Honda XL250 for free. I was game to give it a try, and clad in a bunch of ancient way-too-big motocross gear, learned to slowly maneouvre the clutch, gears and so on. After that, I was hooked, and had to get a bike of my own. I saved up and eventually settled on a small 4 stroke DR-Z125. It was the first major purchase I'd made in my life. It was intimidating to hold that many notes in hand. We had to go to two separate machines to withdraw it all. That little yellow bike took me on a ton of adventure. It taught me basic machine maintenance, and I got to see parts of the country I'd never have been able to access by foot or car. / Sacha Laird A beach trip I'm saving for a trip to Australia. And bikinis. / Wilder (age 13) Not sure what kind of account is best for your savings goal? Westpac's Savings & Investment Chooser Tool offers tailored advice on savings options to suit your needs and future goals.** Secondhand books In 2020 I read Lolly Willowes, a novel by deceased UK author, Sylvia Townsend Warner. I loved it so much. I became obsessed with everything the author had ever written, and why and how. Trouble was, most of her books were hard to find and very expensive. But I had to have them. I started a book savings account and tucked money into it as often as I could. A couple of years later I was selected to go to Edinburgh Book Festival on an international exchange programme. The trip allowed me a diversion down to Dorset where Townsend Warner lived. I knew many of her books would be secreted away in the town's second hand book stores. When I got there, I found first editions of Sylvia Townsend Warner's biography, diary collections, and more. The savings were drained. / Claire Mabey *Account T&Cs and fees apply. Westpac New Zealand Limited.** This tool doesn't take into consideration your current financial or personal circumstances. Westpac New Zealand Limited.
RNZ News
2 days ago
- RNZ News
Economy to pick up despite high inflation, experts predict
Westpac chief economist Kelly Eckhold. Photo: Supplied / LinkedIn The economy is poised to pick up this year and the Reserve Bank is close to ending interest rate cuts, despite the prospect of higher inflation and unemployment , according to Westpac Bank economists. In their latest economic overview, they forecast better economic times on the back of continued strong agricultural exports, the effect of lower interest rates on household budgets, and less global risk and uncertainty from trade and tariffs . Chief economist Kelly Eckhold said the economy had probably stalled in the June quarter, but it would not last. "Uncertainty associated with the trade war, ongoing cost of living pressures and the still slow pass through of past OCR (official cash rate) cuts into household budgets have been weighing on activity. "Looking further ahead, the disposable incomes of mortgage holders are rising as they continue to refinance at the much lower interest rates now on offer," he said. "And with high export commodity prices also boosting incomes in the rural sector, and the government's 'Investment Boost' policy encouraging the bringing forward of investment, we expect growth in domestic spending to gather pace as this year progresses." Eckhold said globally the outlook was not as bleak as feared when the US announced its "Liberation Day" tariffs in April, because the worst case scenarios have been avoided so far. "The US tariff framework now looks clearer. New Zealand's 15 percent tariff is disappointing but manageable and it remains the case that the country that will be hurt most by tariffs is the US itself. "Despite the volatility, exporters have weathered the storm, and in many cases are successfully passing on tariff costs to their customers." He expected strong dairy and meat export prices to continue through the year, which along with improving tourism numbers would support activity. Eckhold said they expected inflation to edge higher towards the top of the 1-3 percent target band, and unemployment would also nudge up as well, but these were expected to be temporary and would start easing before the end of the year. Westpac was forecasting house prices to rise 3-4 percent this year, and by 6 percent next year, while the government was expected to keep relatively tight control on its finances as it looked to return to surplus in 2028/29. "There's a non-trivial risk that credit rating agencies might stop giving us the benefit of the doubt, increasing the stakes for fiscal management in coming years," Eckhold said. He said the Reserve Bank would make one more 25 basis point cut in the official cash rate to 3 percent next week, but then move to the sidelines. "It's probable that 3 percent will mark the low point in the current cycle provided that activity picks up as expected. The speed and strength of the recovery will determine whether further policy support is needed. "For now, we continue to ask ourselves: Are we there yet?" Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
