Business

As expectations increase that the official cash rate will soon drop, term depositors are being warned to expect their returns to fall, too. Photo: 123RF Falling interest rates are cause for celebration for borrowers - but they are less welcome for people with money in the bank. As expectations increase that the official cash rate will soon drop, term depositors are being warned to expect their returns to fall, too. According to Reserve Bank data, new term deposit rates for one-year deposits have risen from less than 1 percent in 2020 and 2021 to more than 5.5 percent. Longer terms have followed a similar trajectory, but rates have started to soften since the start of this year. Kiwibank recently cut some of its term deposit rates by between five and 20 basis points, taking the five-year...

The public consultation on the design of a digital cash system for New Zealand closed last week, with more than 18,000 responses submitted. Photo: 123RF The Reserve Bank of New Zealand is planning to have a government-backed digital currency in place by 2030. It is in stage two of a multi-year project to consider the use of digital cash, which would circulate alongside physical notes and coins. The public consultation on the design of a digital cash system for New Zealand closed last week, with more than 18,000 responses submitted. Reserve Bank head of money and cash Ian Woolford told Saturday Morning, especially after the CrowdStrike glitch, it wanted digital cash to be as similar to physical cash as possible. "What that means is you will be able to use it when the power is down, when ...

Susan Edmunds, RNZ's money correspondent. Photo: RNZ If you have questions you'd like answered, email susan.edmunds@rnz.co.nz After reading your article about how to get a home loan, my partner and I wonder if considering our financial and social situations, we could apply for one and if yes, which bank and how much could we ask for. I am 61 years old (ouch!!!), full time employee, My partner is 45, unemployed but finishing a course to upskill. We have two children aged 12 and 14. We currently rent a house for $520 and have never missed a payment. We have combined net income if $77,000. Our KiwiSaver balance is currently $38,000 and have a saving account with $14,000 in it. We do not owe any money or have hire purchases. You may run into questions about how long you are likely to be wo...

Not enough of The Warehouse shareholders have supported a buyout attempt by an Australian firm, and the sale will not go ahead. Photo: Rafael Ben-Ari/Chameleons Eye/ 123rf New Zealand's biggest listed retailer is not going ahead with a proposed takeover from an Australian private equity group. The Warehouse Group said the proposed $590 million takeover bid, which had backing from the retailer's founder Sir Stephen Tindall, did not have the required shareholder support. It said a key shareholder told the company it did not support the current terms by Adamantem Capital, meaning it would not have the required 75 percent approval from shareholders for the deal. The group, which is the owner of The Warehouse, Warehouse Stationery and Noel Leeming, did not name the shareholder. Sir Stephen a...

By Emma Stanford of Photo: AFP A spontaneous weekend away in New Zealand is not as cheap as it once was. Most domestic travellers will have, in the last few years, gone to book flights for a weekend away and been shocked at the price. At the time of writing, flights for two people from Auckland to Christchurch on Friday 16 August, leaving after work at 6pm and returning on Sunday 18 August at 3pm cost $1884. This did not include a checked-in bag, just 7kg of carry-on. Leaving Christchurch at 10am would see the trip cost $1480. The cheapest option was $1020, departing at 6am on Friday, but that would require a day of annual leave or remote work. The most expensive fare option for Jetstar, for the same dates, was $1236 - leaving Auckland at 6.30pm and returning on Sund...

First published on Photo: Kiwibank By Martien Lubberink, associate professor of accounting and capital, Te Herenga Waka Victoria University To sell, or not to sell - that is the question various governments have asked since Kiwibank was established in 2002. Now it's the turn of the current National-led coalition to examine the bank's state ownership. Ministers have asked Kiwibank's board to explore avenues for the bank's expansion, potentially including private sector or Crown entity investment. This comes just two years after the previous Labour government spent NZ$2.1 billion to secure complete ownership of Kiwibank, and is part of the coalition's drive for productivity, growth and public sector efficiency. The latest attempt to help the bank prosper while stayin...

Photo: 123rf The High Court has placed Auckland property investor and developer Du Val Group into interim receivership. The interim orders were made against Du Val Capital Partners, together with a number of entities within the Group - at the request of the government financial regulator, the Financial Markets Authority (FMA). Interim receivership orders were also made against directors Kenyon and Charlotte Clarke. The court also approved the FMA's request for asset preservation orders. The order comes as the FMA carries out an investigation into Du Val Group. The FMA said it would not provide further comment but noted there were about 120 investors in the Du Val entities, marketed as wholesale investments. It said John Fisk, Stephen White and Lara Bennett of PwC have been appointed inte...

Briscoe Group is considering the future of its investment in KMD Brands. Photo: RNZ Retailer Briscoe Group is thinking about the future of its investment in struggling outdoor goods business KMD Brands. Briscoes owns nearly 7 percent of KMD shares and revealed its half-year results would be affected by KMD failing to pay an interim dividend. Last year, Briscoes received $1.4 million in interim dividends from KMD - the owner of outdoor brands Kathmandu, Oboz and Rip Curl. KMD recently announced its second-half sales were down more than 8 percent from a year ago. In an interview with RNZ Business, Rod Duke was asked whether it was worth being invested in KMD Brands. "It's a very good question that we're all in this office pondering over," Duke said. "We're evaluating that every board meet...

Vero signage on an Auckland building Photo: Supplied / vero.co.nz The sale of one of the country's biggest office blocks to a Hong Kong-China company has collapsed. Kiwi Property Group (KPG) said it has terminated the $458 million sale of the 38-storey Vero Centre in Auckland after the unnamed buyer failed to meet key conditions. Chief executive Clive Mackenzie said they had tried to get the deal done over the past few months. "Despite our best efforts, the purchaser has now missed the deadline for milestones such as paying the deposit and seeking Overseas Investment Office approval for the deal and, as a result, we've made the difficult decision to terminate the conditional sale contract." The company was not available to comment on whether it would look for another buyer or take the b...

There's a general trend of declining mortgage interest rates. Photo: RNZ Banks are competing hard to win customers' money in what appears to be an escalating mortgage war. ANZ cut interest rates again this week, but notably it has also trimmed its floating mortgage rate by 15 basis points - the first bank to do so in a while. It followed a general trend of declining mortgage interest rates in recent weeks as wholesale rates eased in anticipation of the Reserve Bank lowering the official cash rate. Mortgage advisor Mikey Smith from Guardian Smith said banks have targeted borrowers coming up for renewal, and he has seen increasing wiggle room from banks' during negotiations. "It's very noticeable, I feel like I'm updating people everyday, There's a new rate available for them - I think mo...