Market & Portfolio Update - March 2022
Global share markets gained 3% following strong economic data releases, investors understanding the economic implications of the Russian invasion better, and more clarity around the Federal Reserve’s hiking path over the remainder of 2022. The New Zealand share market gained as well, however, the Australian market was the strongest performer returning over 6% for the month. The Australian market has a higher allocation to commodity producers such as iron ore miners and natural gas, which have performed well as global commodity prices have risen since the war began.
The impacts of the war continue to keep commodity prices elevated, and inflation is rising globally. Here in New Zealand, the Reserve Bank’s job is to maintain price stability and inflation at 2% over the long term. With inflation running considerably higher than that at the moment, we are seeing an increased chance of the RBNZ raising interest rates by 0.5% at their next meeting.
Meanwhile, the US Federal Reserve raised its policy rate by 0.25%, with eight further hikes (2.2% in total) expected by the markets for the remainder of 2022. The Fed also discussed plans to reduce its $9 Trillion balance sheet over the coming months.
Home Loan Rates Are Dropping – But Look Who Quietly Beat ANZ to the Punch
There’s no denying it: after the Reserve Bank’s OCR cut last week, interest rates are finally starting to fall – and fast.
ANZ made headlines with a sharp round of fixed rate drops this week, bringing its 18-month special down to 4.89% and its one-year fixed rate to 4.95%. That’s the lowest ANZ’s fixed rates have been in over three years, and a welcome reprieve for buyers and refixers alike.
Making Sense of Budget 2025: What It Means for Your Money
Budget 2025 has landed, and with it, a sharp focus on doing more with less. Branded as a back-to-basics budget, this year’s announcement signals a disciplined approach to spending, with targeted support in areas that matter most: healthcare, education and the economy.
Whether you’re planning your next career move, growing a business or making sure your retirement savings are working hard, the Budget can have a flow-on effect. Let’s unpack what’s changed, what it means for you, and how to stay financially confident in the year ahead.