Finance News

From the monthly archives: November 2021

We are pleased to present below all posts archived in 'November 2021'. If you still can't find what you are looking for, try using the search box.

Where to for interest rates? Watch New Zealand.

Posted on Wednesday, November 24, 2021
News out of New Zealand today is that their Reserve Bank has lifted interest rates for the second month in a row. The cash rate across the ditch is now at 0.75%, while in Australia it remains at 0.1%. The Reserve Bank of New Zealand offered the below as reasons for the rate rise: New Zealand’s public health restrictions are easing as the country transitions into the COVID-19 Protection Framework, which will enable greater mobility of people, and goods and services.  Underlying economic strength remains supported by aggregate household and business balance sheet strength, fiscal policy support, and strong export returns. Capacity pressures have continued to tighten. For example, employment is now above its maximum sustainable level. A broad range of economic indicators highlight that the New Zealand economy continues to perform above its current potential. The RBNZ’s overall concerns are around labour shortages, and a property market that has defied gravity. They ... Read the rest of entry »

Spend or save? What does your summer look like?

Posted on Friday, November 19, 2021
There are some things we can control, and some things we can’t.
 
Last week’s article on the seemingly constant increases in insurance premiums, is an example of something we can’t control. Costs like this are very frustrating when trying to budget and plan.
 
But one thing we can control, is our discretionary spending.
 
Coming out of lockdown and into summer, retailers, restaurants, and other consumer-based businesses are banking on us opening our wallets and splashing our cash.

And if the US example is anything to go by, it’s looking good for those businesses. Retail sales in the US in October were up 1.7%, with Walmart and Home Depot both reporting massive gains.
 
From a wider perspective, these strong retail numbers are also a strong indicator that the public is confident to spend money, and that the global economy is recovering from the pandemic.

So what about you? Do you think you will spend more this Christmas than previous years?
 

Why are my insurance premiums always going up?

Posted on Thursday, November 11, 2021
It's almost become an annual event: waiting to learn how much your insurance premiums have increased by. Many of us have untold numbers of insurance policies, including car, home, contents, life, TPD, pet, business, the list goes on and on. And every one of these seems to have a steady year-on-year premium increase that's contributing to the ever-growing cost of living, while wage growth remains essentially stagnant. So why do insurance premiums increase every year? It's a pretty simple answer. Every time someone makes a claim, the insurer pays out, and given insurers are businesses, they want to maintain and grow their profits, so to cover the cost of payouts, they have to increase their premiums. As an example, here's MLC's rate increases for this year: Death cover (stepped and level premiums): up 3.5%. TPD: up 3.0%. TPD – Additional Rate changes: up 15%. Critical Illness: up 15%. Income protection (stepped and level premiums): up between 5-35%. One way t ... Read the rest of entry »

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