“Given the importance of returning inflation to target within a reasonable timeframe, the board judged that a further increase in interest rates was warranted,” he said.
Lowe indicated that some further tightening of monetary policy may be required. The cash rate is now at the highest level since April 2012, when it was 4.25 per cent.
Greg Smith, head of retail with Devon Funds Management, said the New Zealand Reserve Bank financial stability report and the latest labour market numbers will be closely watched by the local market.
“There may be a message of reassurance that household budgets are resilient, and interest rates and cost of living increases have peaked. But the battle with inflation is not done yet.”
Smith said unemployment for the March quarter was expected to be steady at 3.4 per cent and wage increases could rise from the record 4.1 per cent in the December quarter to 4.4 or 4.5 per cent.
Fletcher Building increased 14c or 3.04 per cent to $4.75 after presenting to the Macquarie Australia conference and telling the brokers it has “a strong, enduring financial position and is well positioned for a softer full 2024”.
Fisher & Paykel Healthcare was up 39c to $27.80; Freightways gained 31c or 3.34 per cent to $9.59; Port of Tauranga collected 7c to $6.39; Summerset Group improved 14c to $8.30; a2 Milk added 6c to $5.91; and Fonterra Shareholders’ Fund increased 12c or 3.48 per cent to $3.57.
Restaurant Brands increased 18c or 2.43 per cent to $7.60; Serko rose 11c or 5.19 per cent to $2.23; Gentrack added 10c or 3.04 per cent to $3.39; and Vista Group gained 3c or 2.4 per cent to $1.28.
Comvita rose 18c or 6.38 per cent to $3 after telling the market it is experiencing solid demand and gaining market share for its manuka honey, propolis and olive leaf extract products.
Comvita said it is expecting a record fourth quarter to deliver the full-year guidance of double-digit growth in operating earnings (ebitda), and “keep us on track to our full year 2025 target of $50m ebitda”.
Eftpos provider Smartpay Holding reached a 20-year high after rising 6c or 3.66 per cent to $1.70. It reached $1.60 on March 1, 2003.
Embark Education was up 5c or 8.2 per cent to 66c after reporting increased occupancy at its early child care centres and a 21 per cent increase in Australian revenue to A$13.9m ($14.9m) for the first quarter compared with the previous corresponding period.
Other gainers were Michael Hill up 2c or 1.85 per cent to $1.10; NZ Automotive Investments improving 3.5c or 11.48 per cent to 34c; Rakon adding 2c or 1.9 per cent to $1.07; and Marlin Global increasing 2c or 2.38 per cent to 86c.
Manawa Energy, up 5c to $4.95, has secured the rights to develop the Project Horikawa 230MW windfarm in central North Island. The wind development would generate about 800 gigawatt hours of electricity each year – enough to power 100,000 average New Zealand homes.
Auckland International Airport, down 7c to $8.75, is planning a bond offer that matures in November 2028. Hallenstein Glasson’s strong run ended, falling 19c or 2.95 per cent to $6.24.
Meridian Energy, which also presented to the Macquarie Conference, declined 6c to $5.36; Ebos Group was down 31c to $43.69; Seeka decreased 13c or 4.64 per cent to $2.67; and CDL Investments shed 4c or 5.06 per cent to 75c.
Other decliners were Eroad, down 2c or 3.45 per cent to 56c; NZME down 2c or 1.83 per cent to $1.07; and Just Life decreasing 1.56c or 3.9 per cent to 37c.
Chatham Rock Phosphate, up 0.002c to 15c, has provided samples of Queensland Korella Mine phosphate to seven fertiliser manufacturers in New Zealand, Australia, Canada and Europe.
Software firm AoFrio, down 0.003c or 2.94 per cent to 9.9c, told the market it is maintaining its full-year guidance, with revenue expected to increase more than 30 per cent to near $100m and operating earnings reaching $3.5m. First quarter revenue was $14.7m compared with $18.4m for the same period last year, and ebitda was running at a $400,000 loss.
