The RBA does not want to admit there’s an important dimension of inflation that’s beyond the direct control of the central banks.
Investors expecting Australia to follow New Zealand and South Korea with interest rate hikes in a matter of months don’t see the crucial difference that raises the odds against such timing.
Westpac will assess whether a demerger of its New Zealand arm,which is thought to be worth more than $10 billion,would make sense for shareholders.
The Ardern government will effectively kill New Zealand’s version of negative gearing as it tries to slow 25 per cent spike in house price growth.
The bank said it was treating the matter with “the highest priority,and acting with urgency”,as it investigates the breach.
The central banks of NZ and Australia suggest it will be the Shaky Isles to emerge faster and stronger from the coronavirus recession.
The ASX closed 537.3 points lower at 5002 points,dropping 100 points during final settlement. It is the single worst day since the index launched in 2000.
The Reserve Bank of New Zealand is sticking with a plan to lift capital requirements by $19 billion,but concessions should soften the blow for Australia's big four banks.
Local market falls for a second session,dragged lower by weakness in energy,resources and telecommunication stocks.