Summary of News from Interest.co.nz (February 5, 2026)

Here’s a breakdown of the key information from the provided text:

Financial/Economic News:

* Interest Rates: WBS launched a 4% one-year rate, and ICBC raised rates.Updated term deposit rates (under 1 year & 1-5 years) are linked.
* Household Finances: Falling interest rates contributed to a drop in household living costs (2.2% vs 3.1% inflation). Though, there’s a discrepancy between Stats NZ and RBNZ data on interest payments. A third of NZ households have no mortgage.
* Swap Rates: Wholesale swap rates are little-changed. 90-day bank bill rate unchanged at 2.51%.global bond yields show some movement (AU,China,Japan,NZ,US).
* NZX50: Up +0.2% today, unchanged over 5 days, +6.1% over 6 months, and +5.0% year-on-year. F&P Healthcare is up, while fletcher Building, Kathmandu, NZX, and Gentrack are down.
* Australian Housing: House prices in Australia are rising (+9.4% nationally year-on-year), but affordability is a growing concern, especially in Sydney & Melbourne.Sydney median price is AU$1.29 mln (NZ$1.5 mln), Brisbane AU$1.055 mln (NZ$1.22 mln).

Property Market:

* Housing Supply: The number of homes listed for sale is at a 10-year high, giving buyers more choice. The market is kicking into gear for 2026.

Other News:

* Quiz: A new quiz is available on the website.
* funding for Lending Program (FFL): The RBNZ’s pandemic-era Funding for Lending program has been fully repaid.
* Salvation Army Appeal: Launching a Fresh Start Appeal to support financial mentoring services.
* Equities: Local equity market is unchanged, ASX200 is down -1.0%, Tokyo up +0.6%, Hong Kong down -1.6%, Shanghai down -0.6%, Singapore up +0.1%, S&P500 down -0.1%.

Links for further reading are included in the original text.

What were the main economic indicators released on Monday, February 2nd, 2026?

What Happened Monday | interest.co.nz: A Daily Financial Snapshot – February 2nd, 2026

interest.co.nz’s “What happened Monday” reports are a cornerstone for New Zealanders seeking a concise, daily overview of the nation’s financial landscape. This article breaks down the key events covered on February 2nd,2026,offering insights into market movements,economic indicators,and critically important business news.

Key Market Movements – February 2nd, 2026

Monday’s trading saw moderate activity across key New Zealand markets. Here’s a speedy rundown:

* NZX 50: The benchmark NZX 50 index closed at 11,872.5 points, a slight increase of 0.2% from Friday’s close. This modest gain was largely driven by positive performance in the consumer discretionary and healthcare sectors.

* interest Rates: The Reserve Bank of New Zealand (RBNZ) maintained the Official cash Rate (OCR) at 5.50%. Market speculation continues regarding potential rate cuts later in the year, influenced by recent inflation data.

* Currency Exchange: The New Zealand dollar (NZD) traded at US$0.6125, experiencing a minor dip against the US dollar due to strengthening US economic data released over the weekend. The NZD/AUD rate remained relatively stable at 0.935.

* Bond Yields: 10-year New Zealand government bond yields edged up to 4.35%, reflecting ongoing concerns about long-term inflation expectations.

Economic Indicators Released

Several key economic indicators were released on Monday, providing a clearer picture of New Zealand’s economic health:

1. Business Confidence: The latest ANZ business Outlook survey showed a slight betterment in business confidence, rising from 48.2 to 50.1. While still below the long-term average, this indicates a lessening of pessimism among businesses.
2. Housing Market: CoreLogic data revealed a 0.5% increase in nationwide house values, marking the third consecutive month of gains. auckland saw a more substantial increase of 0.8%, while other major cities experienced more modest growth.
3. Commodity Prices: The GlobalDairyTrade (GDT) auction saw a 1.2% decrease in overall dairy prices, impacting Fonterra’s share price. This decline is attributed to increased supply from European producers.

Significant Business News

Monday’s headlines were dominated by several key business developments:

* Air New Zealand Expansion: Air new Zealand announced plans to expand its international routes, adding new flights to Japan and South America. This move is expected to boost tourism and contribute to economic growth.

* Fonterra’s Sustainability Initiatives: Fonterra unveiled a new sustainability strategy, committing to reducing greenhouse gas emissions by 30% by 2030. The strategy includes investments in renewable energy and lasting farming practices.

* Retail Sector Challenges: The Retail New Zealand association reported continued challenges for the retail sector, citing rising costs and declining consumer spending.Several smaller retailers announced closures.

* infrastructure Investment: The government announced a $2 billion investment in infrastructure projects, focusing on upgrades to the national roading network and improvements to public transport.

Impact on mortgage Holders & Borrowers

The stable OCR and slight increase in house values have mixed implications for mortgage holders.

* Fixed Rate Mortgages: those on fixed-rate mortgages are currently protected from any immediate rate increases. However, refinancing options may become more attractive if the RBNZ signals future rate cuts.

* Floating Rate Mortgages: Borrowers with floating-rate mortgages will continue to be affected by any fluctuations in wholesale interest rates.

* First Home Buyers: The continued rise in house prices presents a challenge for first-home buyers, possibly requiring larger deposits and increased borrowing.

Looking ahead: Key Events This Week

Several crucial events are scheduled for the remainder of the week that could impact New Zealand’s financial markets:

* Wednesday: Release of the latest labor market data, including unemployment rate and job growth figures.

* Thursday: RBNZ’s financial Stability Report, providing an assessment of the stability of the New Zealand financial system.

* Friday: Consumer price Index (CPI) data for January, which will be closely watched for signs of inflationary pressures.

Practical Tips for Navigating the Current Financial Climate

* Review Your Budget: Regularly review your budget to identify areas where you can reduce spending.

* Shop Around for Insurance: Compare insurance quotes to ensure you are getting the best possible rates.

* Seek Financial Advice: Consider seeking advice from a qualified financial advisor to help you make informed decisions about your finances.

* Stay Informed: Keep up-to-date with the latest financial news and economic developments.

Case Study: Impact of Dairy Price Decline on Rural communities

The recent decline in dairy prices, as reported by interest.co.nz, is having a significant impact on rural communities reliant on the dairy industry. Farmers are facing reduced income, leading to decreased spending in local businesses. This highlights the interconnectedness of the New Zealand economy and the importance of diversification.

Real-World Example: Air New Zealand’s Route Expansion & Tourism

Air New Zealand’s expansion into new international markets is a positive example of a company proactively responding to changing market conditions. The increased tourism is expected to generate significant economic benefits for new Zealand, supporting jobs and boosting local economies.

Navigating the Shifting Sands of the New Zealand Economy: Inflation, Investment, and Emerging Trends

The feeling that inflation is stubbornly high, despite headline figures suggesting otherwise, is a common one. And it’s a feeling backed by data. While overall food price inflation eased to 4.0% in December, the continued surge in costs for essentials like meat (+7.4%) is acutely felt by consumers. This disconnect between macro-economic trends and everyday experience is a key signal of the complex economic landscape unfolding in New Zealand – one characterized by surprising resilience in some sectors, persistent inflationary pressures in others, and a notable shift in investor behavior. But beyond the immediate numbers, what does this mean for the future, and how can businesses and individuals prepare?

Manufacturing’s Unexpected Rebound and the Broader Economic Picture

A significant positive signal emerged in December: the manufacturing sector experienced a broad-based improvement, with the PMI rising to its highest level since before the pandemic. This isn’t an isolated event; it aligns with earlier economic indicators suggesting a strengthening foundation. Every region, except Otago, is now experiencing expansion, indicating a widespread recovery. This is particularly encouraging given global economic headwinds. However, this positive momentum needs to be viewed alongside other factors.

Investor Appetite and the Rising Share of Mortgage Lending

Perhaps one of the most striking trends revealed in the recent data is the increasing share of new mortgage lending going to investors. Now accounting for almost 29% – a new high since data collection began in April 2021 – this suggests a renewed confidence in the property market, or at least a belief that current conditions present a buying opportunity. The prevalence of floating rate mortgages (53% for investors) also indicates a willingness to take on short-term risk, potentially anticipating future rate cuts. This contrasts with owner-occupiers, where fixed rates remain more popular (47% floating).

Investor behavior is a critical indicator to watch. A continued increase in investor lending could put upward pressure on house prices, potentially exacerbating affordability issues.

Inflationary Hotspots: Electricity, Gas, and Transport Costs

While food price inflation is moderating, other areas are experiencing significant price increases. Electricity costs jumped +12.2% in December, and household gas prices soared by +17.5%. These energy price hikes are directly impacting household budgets and business operating costs. Public transport fares are also on the rise (+5.1% in Auckland), adding to the cost of living. Interestingly, domestic airfares fell (-1.2%), offering a small reprieve for travelers, though international airfares continue to climb (+6.6%).

Bond Market Stability and Regional Council Finances

The recent NZGB bond tender results indicate strong demand, with bids exceeding the $450 million on offer by a significant margin. Yields remained relatively stable, suggesting continued investor confidence in New Zealand government debt. However, the S&P’s affirmation of the Greater Wellington regional council’s debt, coupled with a warning about potential downgrades due to central government rate caps, highlights a growing concern about the financial sustainability of local authorities. This is a risk worth monitoring, as a downgrade could increase borrowing costs for councils and limit their ability to invest in essential infrastructure.

Global Economic Signals: Singapore’s Exports and Australian Tourism

Looking beyond New Zealand, global economic signals offer further insights. Singapore’s non-oil exports rose +6.1% in December, indicating continued strength in the global trade landscape. Meanwhile, Australia experienced a record high in short-term tourist arrivals (+20% in November), with New Zealand remaining a key source market. However, Australian travelers are increasingly favoring Indonesia over New Zealand, a trend that warrants attention from the New Zealand tourism industry.

The Implications for New Zealand Tourism

The shift in Australian tourist preferences towards Indonesia presents both a challenge and an opportunity for New Zealand. To remain competitive, New Zealand needs to focus on offering unique experiences, enhancing its value proposition, and potentially diversifying its target markets. See our guide on attracting international tourists for more insights.

Navigating the Future: Key Takeaways and Actionable Insights

The New Zealand economy is currently navigating a complex interplay of factors: a rebounding manufacturing sector, persistent inflationary pressures, shifting investor behavior, and evolving global economic conditions. The key takeaway is that a ‘one-size-fits-all’ approach to economic forecasting is no longer sufficient. Businesses and individuals need to be agile, adaptable, and informed.

Here are some actionable insights:

• Businesses: Focus on cost management, explore opportunities for innovation, and diversify your supply chains.
• Investors: Carefully assess risk tolerance and consider the potential impact of interest rate fluctuations.
• Individuals: Prioritize financial planning, explore energy-efficient solutions to mitigate rising utility costs, and stay informed about economic developments.

Frequently Asked Questions

The economic landscape is constantly evolving. Staying informed, adapting to change, and making informed decisions will be crucial for navigating the challenges and opportunities that lie ahead. What are your predictions for the New Zealand economy in the coming months? Share your thoughts in the comments below!

Explore more insights on New Zealand economic forecasts in our dedicated section.