Investor Presentaiton
NZ Interest rate environment
90 day interest rates
90 day rate projections
: 32
%
16
%
16
5.5
RBNZ projection (Sep
% 5.5
MPS)
14
12
4
14
5.0
5.0
Swap market pricing
Forecast
12
4.5
4.5
10
8
10
4.0
Westpac Economics
forecast
4.0
8
3.5
3.5
CO
6
CO
6
3.0
3.0
4
st
4
2.5
2.5
2
2
0
0
2.0
2.0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Nov-13
Mar-14
Sep-14
Mar-15 Sep-15
Mar-16
NZ interest rate markets
Commentary
Last Price
6.0000
NZD SWAP OIS 1 YR
3.1798
NZD SWAP 2 YR
3.8125
NZD SWAP 5 YR
New Zealand Official Cash Rate 2.5000 5.5000
4.6900
5.0000
•
4.6900
-4.5000
•
4.0000
3.8125
-3.5000
•
3.1798
-3.0000
•
2.5000
2.0000
2009
2010
2011
NDS01 Curncy (NZD SWAP OIS
1 YR) Graph 9
Daily 19DEC200
2012
Copyrights 2013 Bloomberg Finance L.P.
2013
20
23-Dec-2013 14:01:46
NZ bill rates have been stable at historical lows
for 4 years
The broader market consensus is that rates
will begin to rise in Q1 2014
Rates rises over next 2 years around 2.5%
Swap rates reflect expectations
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