First Union, which represents 1,000 ANZ Bank New Zealand staff, says the bank's move to cut frontline retail sales incentives is a "major move in the right direction", though changes from other banks may be some time away.
The Government cannot deny any more that the economy is slowing and that it's not doing enough to stimulate investment and reassure the construction sector in particular, Bernard Hickey argues.
The Reserve Bank will most likely keep the Official Cash Rate on hold at 1.75 percent, but the real question is whether it will signal keeping the rate on hold for longer after last week’s disappointing GDP numbers.
News in the political economy since Friday included:
New Zealand business confidence got even gloomier in May as firms, especially retailers, expect slower activity and more are now anticipating earnings to shrink in the coming year.
Business confidence dipped in May according to ANZ’s monthly business confidence survey.
Regulators launch urgent inquisition into big four Australian-owned banks, demanding results of internal inquiries into problems seen in Australia. Bernard Hickey introduces the full letter demanding results within 2 weeks.
The news that matters this morning
Newsroom Business Editor Nikki Mandow has taken a detailed look at the Overseas Investment Office's decision to block the takeover of ANZ's UDC by China's HNA. She found ANZ and UDC customers and funders dodged a huge bullet, thanks to the OIO's due diligence. One question stands out: why went wrong with ANZ's own due diligence?
Former Finance Minister Bill English has described the influence of Australia's big four banks as more pervasive in New Zealand than that of China.