Rebuilding Christchurch will create conditions similar to the building boom between 2002 and 2007, Reserve Bank governor Alan Bollard says, helping the economy and improving prospects for the building sector 'massively'.
Banks have slashed interest rates after the Official Cash Rate was cut to a record low of 2.5 per cent.
Enjoy the low interest rates while they last...
The Reserve Bank should have waited for more data on the true impact of the earthquake and put a bit more faith in the resilience of the New Zealand economy.
Christchurch is "utterly" committed to holding its Rugby World Cup matches, and its citizens "will be far from pleased if they miss out on an event that has taken on a different meaning", Mayor Bob Parker said this morning.
BNZ and Kiwibank have joined the other banks and cut mortgage rates.
John Key says his "strong preference" is to hold Rugby World Cup games in Christchurch, and says it's still possible if AMI Stadium is fit for matches.
The New Zealand dollar will probably hold around 75 US cents until next Thursday as traders wait for the Reserve Bank to say whether it will cut the OCR.
Sister banks ANZ and National have cut mortgage interest rates.
The economy will now barely grow at all in 2011, because of a "noxious mix" of spiking global petrol and food prices along with the impact of the second Christchurch earthquake, says NZIER.
The New Zealand dollar may extend its losses this week as the cost of the Christchurch earthquake becomes clearer.
Amid the tragedy and debris it feels harsh to talk about economics and daunting to talk about getting Christchurch back to business.
ANZ New Zealand says its plans to put the ANZ and National Banks onto one IT platform and restructure management by laying off 45 staff and establishing a new structure will cost it a total of $220m.
The New Zealand dollar has fallen to a near six-month low on a trade-weighted basis.