Category: Business

Source: Radio New Zealand

• New RBNZ Governor has an assured first public outing
• Anna Breman repeats a laser focus on low and stable inflation
• Wants greater transparency on rate decision making, communication
• RBNZ has a strong global reputation

Greater transparency and a focus on low and stable inflation were the key messages from the Reserve Bank’s new governor, Anna Breman, in a confident and comfortable first public appearance.

She appeared before Parliament’s Finance and Expenditure select committee, alongside the newly appointed chair Roger Finlay, for the annual review of the central bank’s performance.

On only her second day in the job she was not in a position to comment on what Labour’s finance spokesperson Barbara Edmonds called a “tumultuous year”, in which former governor Adrian Orr abruptly resigned, the stand-in governor Christian Hawkesby resigned when he failed to get the top job, and the RBNZ board chair Neil Quigley resigned for handling of the aftermath of Orr’s departure.

Breman essentially reprised her comments when she was unveiled as the new governor in October.

“Key focus for the bank under my leadership will be to stay laser focused on our core mandate, and that is low and stable inflation, stable financial system, and a safe and efficient payments system, and importantly that means ensuring cash is available to all New Zealanders.”

“As we head in 2026 transparency and accountability and clear communication will be our focus to maintain trust and credibility with New Zealanders.”

How the rate committee voted

Breman said she would discuss with members of the rate setting Monetary Policy Committee the prospect of publicly revealing individual voting decisions.

However, the Labour Party MPs suggested having various views of the seven members of the committee made public might be confusing, and leave members open to lobbying.

“It is imperative to have a good discussion, that people are allowed diversity of thought, it’s not just they are allowed it but should be encouraged,” Breman said, adding whatever approach was taken would be based on what was good and appropriate for New Zealand.

She said that could also include in the economic forecasting ahead of decisions, with people being asked to take contrary views to test all options.

Asked about her view on the bond buying policy the RBNZ adopted to pump $53 billion into the economy during the pandemic, she said it was a mechanism that had been used by other central banks around the world at the time.

“This is an unusual monetary policy tool, you want to keep it in the overall toolbox , being very mindful of having the OCR (official cash rate) as your primary monetary policy instrument.”

Meanwhile, RBNZ officials said the recent restructuring to meet its reduced budget resulted in 68 redundancies at a cost of $2.6m.

Chairman Finlay said the RBNZ would soon release its decisions on the amount of capital banks should hold.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The new governor of the Reserve Bank is appearing before Parliament’s Finance and Expenditure Committee in her first round of public questioning.

You can watch the committee live at the top of this page…

Anna Breman is the first woman to be governor of the RBNZ, starting her five-year term on Monday.

She will be appearing alongside new RBNZ board chairman Rodger Finlay and other senior leaders.

Breman was previously first deputy governor of the Swedish central bank (Riksbank).

She is the RBNZ’s first permanent governor since the abrupt resignation of Adrian Orr in March, and replaces Orr’s temporary replacement, Christian Hawkesby.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Many organisations are overlooking the cost of job insecurity in the workplace when aiming to boost efficiencies.

Business consultancy Baker Tilly Staples Rodway said restructuring could make teams less productive in the long run.

Associate Felicity Salter said restructuring was often unavoidable, but the financial logic of reducing headcount could be undermined if the remaining workforce became more cautious, less collaborative and less engaged.

“We see higher levels of absenteeism, higher safety incidences, and sometimes those incidences aren’t reported because there’s that fear of losing their job in an already uncertain environment.

“We’re seeing lack of innovation and lower performance as well, which is a bit counterproductive.

“You’d sort of expect people to perform higher in these conditions, to safeguard their roles. But that’s not actually what we’re seeing.”

She said global studies showed a rise in job insecurity resulted in a drop in productivity.

“Other studies indicate that insecure employees are more likely to hoard knowledge or hide information to appear indispensable, which is linked to reduced company performance.

“There is also evidence across multiple industries that insecurity erodes people’s sense of autonomy and control, lowering engagement, dulling innovation and reducing their willingness to invest time and energy into their roles.”

Still, Salter said there were ways to balance right-sizing a workforce without destabilising the teams that needed to be retained.

“Business leaders needed to be aware of warning signs, with practical steps to mitigate any fallout.”

She said communication was critically important, along with real engagement with staff, support programmes, and a focus on ensuring compensation policies were up-to-date.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Falls in Bitcoin’s value are typical of the cryptocurrency’s high levels of volatility, experts say, but having a proponent in the White House is likely to put a floor under its price.

The price of Bitcoin has fallen significantly after a volatile year.

In mid-October it hit a record of more than NZ$214,000 but it has dropped sharply since then, back to levels last seen in April. Prices are now about 7 percent lower year-on-year and down 20 percent in a month.

“It’s been a pretty bouncy road this year for Bitcoin, post Trump coming in,” Rupert Carlyon, founder of Koura KiwiSaver said. Koura offers a crypto fund.

“Twelve months ago, Trump came in, it all got quite frothy and then it kept on building.

“This time, with all the nervousness in the last couple of weeks around, is the US Fed actually going to continue with the cutting cycle, is AI massively overblown, is the tech sector overblown? … When the stock market has a sneeze Bitcoin catches pneumonia and that’s a bit what we’ve seen over the past couple of weeks.

“Is it existential? No. Is this very similar to what we’ve seen repeatedly over the last couple of years? Yes. Why would this time be different? There’s nothing that I can see which says this is going to be different.”

He said liquidity could be a risk to the cryptocurrency.

“The big thing with Bitcoin now is the liquidity trade. What that means is how much spare money is sloshing around.

“And I think with the combination of the US shutdown, with some concerns around the direction of where the US Fed are likely to go and how easy they’re going to make money through conditions, probably the big risk factor is does liquidity dry up? But that goes counter to absolutely everything that Donald Trump wants to do. And he’s going to bully his way, I think, to get the opposite impact. So that’s why I remain confident.”

Trump has been a supporter of cryptocurrencies since he took office again.

“From a markets perspective, I remain confident that Donald Trump will do everything in his power to boost global, to boost financial markets, whether that be the stock market, whether that be Bitcoin. He’s got a real desire and he sees that the financial markets are a true kind of judgement on his presidency. And that gives me confidence that the White House will continue to step in as and when necessary.”

Muhammad Cheema, a senior lecturer in finance at Otago University, said Bitcoin was originally promoted as a safe haven asset but had never behaved like one.

“In fact, Bitcoin has proven to be even riskier than the stock market. For instance, in one of my papers … we find that ‘Bitcoin moves in tandem with stock market losses and does not serve as a safe haven during Covid’. During the early days of the Covid-19 pandemic, Bitcoin lost almost 46 percent of its value on a single day – March 12, 2020, while the S&P 500 fell by about 10 percent on that day. This clearly shows that Bitcoin is an extremely risky and speculative asset.

“Like most speculative assets, Bitcoin’s price is driven primarily by investor sentiment. Traditional assets such as equities have fundamental value because they represent ownership in firms that generate income. Bitcoin, by contrast, has no underlying cash flow; its value depends almost entirely on market perception. Many investors implicitly rely on the greater fool theory – the belief that an asset can be sold at a higher price to someone else. Investor sentiment is currently weak due to economic uncertainty, geopolitical risks, trade tensions, and broader market volatility.”

Alex Sims, a professor in the University of Auckland law school, said Bitcoin’s price was still up significantly over a longer period.

“The current price is actually just under what it was a year ago. But in the past 12 months it fell, then rose and now has fallen again. However, Bitcoin is significantly higher than it was two years ago. These price movements are typical of Bitcoin.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Single retired women turning to reverse mortgages

Single women are turning to reverse mortgages as a way to get more cash flow in retirement – and some commentators say it may sometimes be because the adjustment to a “single” pension rate is too tough.

Professor Graham Squires from Lincoln University has conducted research on reverse mortgages in New Zealand.

“This research has not been conducted in New Zealand before, and it is timely given the trajectory of our ageing population and the financial pressures retirees face,” he said.

He said while reverse mortgages were relatively niche, only offered by Heartland Bank and Southland Building Society, they could become more common.

“Reverse mortgages can be useful, but they come with sensitivities around debt and intergenerational wealth,” he said. “If someone remortgages their house later in life, this can affect the level of debt a person holds, potentially passing it on to their children. Our research aimed to provide an objective understanding of how these loans are actually used.”

He said the average amount borrowed was just under $50,000 and 95 percent were voluntarily repaid before the borrower died.

The typical applicant was a 72-year-old single woman.

He said New Zealanders appeared more cautious than Australians, who often borrowd up to the maximum permitted amount.

“Here in New Zealand, the market is highly regulated to help protect financially vulnerable people – those who are struggling financially and repayments may be difficult to make. I believe this research shows that New Zealanders are sensible by not taking out large loans in their retirement years, and that appropriate safeguards are in place. What is vital in the future is the need for people to be financially literate, so they understand what financial options are available to them and what the most appropriate might be.”

Ralph Stewart, whose business Lifetime Retirement Income offers Lifetime Home, a different model that allows people to sell a stake in their house in return for ongoing income, said his clients were also commonly single females.

“They’re sort of left alone in the household by themselves with the house with maybe 20 years to run.”

People who were widowed or separated would find their pension dropped from the married rate of $828 a fortnight each to the single rate of $1076.

“The amount of discount to NZ Super is not proportionate to your expenses,” he said.

Claire Matthews, a banking expert at Massey University agreed being widowed could be a catalyst for people to look at other options.

“It would make it more challenging to remain in the family home. But that should also affect widowed men, although the gender difference would reflect the higher rate of women being widowed. However, I wonder to what extent it also reflects the known gender gap in retirement savings – if women have lower levels of savings, they may have a greater need to access the equity in their home.”

Liz Kohm, founder of Enrich Retirement, said New Zealanders had a conservative approach to reverse mortgages.

“Perhaps too conservative. Current retirees are part of a generation who believe that it is not good to take on debt, especially in retirement.

“This is despite the fact that the debt does not have to be repaid during their lifetime. It would be interesting to know the reasons why the mortgages are voluntarily repaid before death. Possible reasons include selling the home to move into a retirement village – where reverse mortgages are not permitted or family members repaying the debt to avoid erosion of their inheritance. In my view there is scope for retirees in New Zealand to be more relaxed about reverse mortgages and to take better advantage of the opportunity to improve their standard of living. There is a balance to be struck between spending money/wealth on oneself versus leaving more money/wealth behind for family members to spend.

“My observation is it is mostly people who have separated or divorced. Women usually end up worse off than men after a relationship breakdown – probably due to lower earning power and also psychological issues.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Kiwibank survey shows 85 percent want to own their own home
• 43 pct of non-owners think they will never own one
• More than half of non-owners feel locked out of property market
• Cost of living, high prices, getting a deposit are barriers
• Would-be owners flexible in achieving their goal

The impulse to own a house remains a core driver for many New Zealanders seeking security and future wealth, but a large number think that will never happen, according to a new bank survey.

The second Kiwibank State of Home Ownership report showed 85 percent of respondents agreed home ownership was at the core of what it called the “Kiwi Dream”, unchanged from the 2024 report.

Confidence in achieving that was improving, but 57 percent still felt locked out of the market, and 46 percent of non-owners said they had “given up hope” of their own house.

Kiwibank chief executive Steve Jurkovich said the survey showed that home ownership was core to the New Zealand identity, and there was a resilience and determination to get on the property ladder.

“While optimism about getting on the ladder has lifted, many Kiwi still feel locked out. Yet, true to Kiwi spirit, they’re willing to adapt and compromise to achieve their dream of home ownership.”

Barriers to ownership

The main difficulties in getting on the ladder were named as the cost of living, high house prices, and difficulty in saving a deposit .

Jurkovich said the survey showed would-be owners being more adaptable in finding ways to buy a property.

“That includes exploring non-traditional pathways like co-ownership … or relocating to a different region.”

Other options included buying a smaller house, moving in with family and friends to save money, and going overseas.

Younger age groups — 18-29 year olds (Gen Z) and those between 30 and 44 (millennials) — were the most eager to buy a house and the most confident of eventually doing so.

Jurkovich said once people had bought a house they were determined to pay off the mortgage, with a third saying they were in better financial shape than a year ago and 82 percent saying it was their top priority.

“Around 40 percent of our fixed-rate home loan customers are making extra payments each month, putting them on track to clear their loans sooner. It’s a strong signal of Kiwi commitment to financial security.”

He said lower interest rates and the easing in the loan to value ratios should benefit would-be home buyers.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Consumer and business credit demand increased in October, a positive sign for the economy, but monthly company liquidations hit their highest level since 2011.

Credit agency Centrix’s October monthly report showed consumer arrears continued falling to 459,000, about 12 percent of all borrowers, from 465,000 the monthly before, the lowest level in more than two years.

Chief operation officer Monika Lacey said recent Official Cash Rate (OCR) cuts were beginning to positively reshape the credit environment, a trend she expected would continue after last week’s OCR cut.

“New household lending rose 13.2 percent year-on-year and mortgage enquiries remain elevated, as refinancing continues to be popular among borrowers seeking lower rates.

“Consumer credit demand is rising ahead of Black Friday, up 4.8 percent year-on-year, with personal loan demand increasing as the retail sales season ramps up.”

In contrast, credit card demand fell by 22.2 percent which Lacy said was due to them becoming less popular with younger consumers.

Business demand rises, but so do liquidations

Business credit demand rose 3 percent year-on-year, which Lacey said signalled steady growth across key sectors.

Credit demand was strongest in the hospitality sector, up 38 percent over the past 12 months, followed by education/training at 22 percent, and retail trade at 19 percent.

Construction remained under pressure, with credit demand falling 11 percent, and transport credit demand fell by 4percent.

Company liquidations rose to their highest level since 2011, which Lacey said underscored ongoing financial stress in some sectors, as well as increased enforcement by the Inland Revenue Department.

Construction had 753 liquidations over the past year, followed by 318 in hospitality, but overall six of 19 industry sectors showed improvements.

Lacey said the numbers had to be taken in context, and the total number of liquidations were only a tiny proportion of the total number of companies in the country.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

After years of anticipation, IKEA is set to open its doors to the New Zealand public for the first time on Thursday, December 4.

IKEA’s management said they’re expecting between 15,000 to 20,000 visitors to the Sylvia Park store on its first day of trade.

As a result, motorists have been warned to brace themselves for significant travel delays across the region on Thursday.

On Monday, media were given a first look inside the 34,000sqm store which had been in the works for seven years.

What is it like?

IKEA is well known for its bright colours and staged home environments – both of which could be found in the Auckland store.

Customers will be greeted by multiple rooms set up including lounges, kitchens, bedrooms, bathrooms and even patios. Each room was adorned with artwork and furnishings down to fake vegetables in the fridges and fake meat on a barbecue.

Everything in the rooms has price tags along with the Swedish name for each item.

After wandering through the showrooms, shoppers would come across the restaurant – complete with IKEA’s famous Swedish meatballs.

Customers were advised to download the IKEA app which would help them navigate the store which was across two levels and hep them find where to pick up flatpack items.

What will the roads be like?

Motorists have been told to expect 40-minute queues in the area along with potential hour-long waits for carparks.

Auckland Transport and NZTA have encouraged road users to plan ahead for the day and allow plenty of extra time for their journeys.

Auckland Transport Operations Centre (ATOC) Manager Claire Howard said substantial crowds were expected at IKEA for weeks or even months which would have a substantial effect on the transport network across Auckland.

“Surrounding streets in Mt Wellington will also be busy, with forecast delays of up to 40 minutes on Mt Wellington Highway in peak traffic.”

ATOC – a joint Auckland Transport and NZTA venture for managing the network in real time – has been working with the retail giant to ensure their traffic management plan minimises the traffic impact as much as possible. It would be actively managing light signals and diverting traffic where possible as congestion levels increase.

Congestion was expected to be at its worst during peak hour during the week and on Saturdays between 1 and 4pm – particularly heading northbound from South Auckland toward Mt Wellington.

Staff would be on the ground at Sylvia Park Train Station to help direct people to the store who were travelling by train.

IKEA’s NZ manager Johanna Cederlöf, said for anyone who wasn’t in Auckland or who wanted to avoid the opening day crowds, they could shop online from midnight as a way to beat the crowds.

In terms of when traffic in the area would ease, Cederlöf said she hoped the crowds at the store would not die down for “quite a while”, but it usually took a couple of months for the initial excitement to die down.

She urged anyone travelling to the store to try taking public transport.

What time does the store open?

Cederlöf said the store would open at 11am on Thursday and the carpark would not open to shoppers until 8.30am.

Anyone who arrived earlier than 8.30am would be asked to leave and come back to make sure everyone stayed safe.

“We chose to open at 11am so that we avoid the morning traffic,” Cederlöf said.

“Normal work traffic should be already gone and then you can hopefully, conveniently, come to IKEA and we will monitor the situation.”

The regular IKEA opening hours from 5 December onwards would be 9am to 9pm, seven days a week. The carpark and queue would open daily at 7.30am.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A section of the badly damaged Great Taste Cycle Trail in Tasman is set to reopen the by the end of the year, after significant progress has been made repairing storm damage.

The 200 kilometre cycle trail suffered more than $2 million in damage caused by flooding and slips during June and July, with parts of it completely washed out.

The southern section from Kohatu to Spooners Tunnel has reopened and the northern section from Spooners Tunnel to Belgrove is due to reopen at the end of December.

The New Zealand Cycle Trail Fund put $1.6m towards track repairs, with the funding announced by Tourism and Hospitality Minister Louise Upston during a visit to the Tasman District in September.

She said since the storms, a major on-road detour meant the trail wasn’t suitable for families or beginner cyclists. A number of tourism and hospitality businesses had also been affected by its closure through winter.

“Having Tasman’s Great Taste Trail ready for summer means more people can enjoy one of New Zealand’s most scenic rides. It’s great news for visitors and the local community.”

Upston said having the majority of the trail reinstated would be a big boost for businesses, including bike hire, tour operators, cafes and accommodation providers.

“Bringing the trail back gives locals and visitors alike the chance to enjoy the outdoors and experience everything Nelson Tasman has to offer.”

Nelson Tasman Cycle Trails Trust chair Gillian Wratt previously told RNZ it was heartbreaking to see the damage, especially given the track had been in really good condition.

Economic analysis in 2022 showed the trail brought $34m in direct economic benefit to the region through visitor spending, with an estimated 200,000 people using the trail each year.

The section from Pokororo Bridge to Ngatimoti remains closed, with a detour via the Westbank Rd to Riwaka. An on-road detour will also remain between Wakefield and Belgrove while plans for future repairs are finalised.

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Source: Radio New Zealand

The opening of the New Zealand International Convention Centre (NZICC) is just around the corner and expected to contribute an initial $90 million a year to the economy over the next three years.

The convention centre had been nearly 17 years in the making, from a government feasibility study in mid-2009 to official opening scheduled for Wednesday, 11 February.

Casino operator SkyCity made a deal with the government to build the NZICC in exchange for an extension of its gambling concessions. It then commissioned Fletcher Construction to build it for just over $400 million in 2015.

The construction was expected to take up to three years to complete, by it was clear by 2017 the project was running behind, as costs quickly ballooned.

A 2020 completion day was finally in site by mid-2019, but was not to be after a massive fire caused extensive damage to building in October 2019.

NZICC general manager Prue Daly, who has been on the job for nine years, said the handover of the keys a few weeks ago was the highlight of her tenure.

“It’s fair to say it’s not a traditional journey to opening that we’ve had,” she said. “We thought it was going to be three years. It’s ended up being 10.

“For us as a team, we’re honestly just looking forward now.”

She said the team had been been busy unpacking more than 100,000 pieces of equipment and furnishings over the past four weeks, with more to come.

“So, at the moment, we’ve got about 70 permanent team members, but we are on a bit of a casual recruitment drive,” she said.

The NZICC was looking to employ up to 500 casuals over the next couple of months.

“We will probably start with about 300 casuals and build up to 500 once we are opening and at full steam.”

The centre was looking to recruit ushers for the theatre, people serving food and beverage, the Coffee Pop Up, setup teams, chefs, stewards and audio visual team members.

“We’ve got quite a breadth of roles across the building.”

The building has a capacity of about 4000 people at any one time.

New Zealand-based events are expected to account for about 70 percent to 80 percent of the events, which included conventions, award ceremonies, concerts, another other large events, with international events accounting for between 20 and 30 percent.

She said the international events could attract many thousands of people at one time, with a standard-sized board room providing seating for 20.

The public will get a first look at the facility at a public open day in February.

Daly said the facility will be a “real step-change” for Auckland and New Zealand, with the the City Rail Link also expected to open next year.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand