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Mind the Gap

Title :  Mind the Gap
The RBA raised rates again this week - their 5th hike in just over 9 months - this brings the rate differential to 1.75% over NZ and the main reason why the AUD/NZ cross is under pressure. The resource/commodity boom in Australia is fueling above trend growth and this is what the RBA is trying to keep in check. Compare that with NZ , where growth is below trend and talk is now after the recent business confidence figures that rates may not be raised until September , with Australia to go again July time the currency can only come under further pressure. Hence a good time to review that Australian portfolio and book some profits especially with the exchange rate at current levels . Call Bay Financial Partners on 07 578 3863 or 0800 867 323 to discuss further.
Global growth continues to trend upwards , further evidence of recovery in the US after the recent jobs data and home sales all point to a sustained recovery and the Dow is now back to levels not seen since the Lehman collapse . Call Bay Financial Partners to review your portfolio to see how to leverage off these moves , one possible option is a Capital Protected Global share fund - call Jonathan York on 0800 867 323 to discuss further. 
South Canterbury Finance have gained the extension to the Crown Guarantee , which will now cover qualifying investors until Dec 2011 , what happens after that nobody know at present . Expect new exciting rates over the next week or so . Call us to discuss further.  

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