In a move surprising some economists, the Official Cash Rate (OCR) will at this stage remain unchanged at 2.50 percent.

Today’s review is the first in nine evaluations that the central bank hasn’t further cut the OCR.

Reserve Bank Governor Alan Bollard says the economic outlook remains weak both in New Zealand and overseas, however there are signs that international economic activity is stabilising, and international financial conditions are improving.

The New Zealand economy is expected to begin growing again toward the end of this year, but the recovery is likely to be slow, with key economic indicators such as unemployment being projected to continue deteriorating well into 2010.

Statistics New Zealand figures show unemployment rose to 115,000, or 5 percent, in March to reach its highest level in six years.

The OCR has been slashed from 8.25 percent to 2.5 percent between July 2008 and April this year. The cuts by the Reserve Bank have been suggested by some media sources as an attempt to breathe new life into a domestic economy facing the worst global economic crisis since World War II.

Mr Bollard says the OCR could still move modestly lower over the coming quarters, staying at or below the current level through until late next year.

Remember those famous, all too insightful words of gumbooted Kiwi bloke persona Fred Dagg?

Well, if you’re in need of some reminding as to just how lucky we are, mate, New Zealand has just been named the world’s most peaceful nation.

The land of the long white cloud jumped ahead three spots in the Global Peace Index in 2009, knocking last year’s leader, Iceland, off the top spot.

Now in its third year, the index defines peace as “the absence of violence,” and looks at 23 indicators of peacefulness across 144 countries. Internally, these include homicides, the percentage of the population in jail, the availability of guns, and level of organized crime. External indicators include the size of the military, the exports and imports of arms, battlefield deaths, United Nations peacekeeping contributions, and relations with neighbouring states.

New Zealand scored highly because of its stable government, high level of respect for human rights and relatively small defence spending. The world’s major military powers scored poorly, with Russia at 136th and China 74th.

The US was 83rd, due to its enormous military and the fact it still jails a higher proportion of its population than any of the other 143 nations in the Global Peace Index.

The Reserve Bank cut the Official Cash Rate again today, slicing 50 basis points from the previous 3 percent to make today’s rate a low 2.5 %.

Reserve Bank governor Alan Bollard said developments since March pointed to lower medium-term inflation than previously projected. He believed the main contributing factors were weaker global growth and an unwarranted tightening in financial conditions due to higher long-term interest rates and a stronger exchange rate than expected.

He expected the hefty decline in the OCR over the past year to pass through interest rates to more borrowers over coming quarters as existing fixed-rate mortgages come up for re-pricing.

He said this, combined with the stimulus from fiscal policy, would support the kiwi economy, leading to activity hitting a low and then picking up. It would take some time for economic activity to return to its former glory however, given the scale of the global financial crisis and domestic adjustments underway.

It’s expected the OCR could still move modestly lower over the coming quarters.

Thinking about investment property in Auckland or other places throughout New Zealand? You better start acting quickly. The New Zealand housing market is proving quite the buyer’s dream at the moment.

With property prices the lowest in years, it seems baby boomers (those aged 44-62) are jumping on the low mortgage rates bandwagon and investing in new homes. There was a staggering 45% increase in real estate mortgage applications last month (compared to March 2008) by baby boomers. Those younger than the group in mention are also increasingly trying to buy property; there has been a 34% increase in 28-43 year olds applying for mortgages over the same period last year.

This activity seemingly reflects the lower interest rates invigorating demand, and is showing that investment property is continuing to give good rates of return. The market are jumping at the chance to get fixed terms locked in at these rates, so brush up on your real estate NZ knowledge and pick up a great new property!

In a bid to stimulate the economy, the Official Cash Rate has been cut again this morning to 3%. This takes it down by 50 basis points from the previous 3.5%, the third cut in less than four months.

Reserve Bank Govenor Allan Bollard has noted that the 525 basis points in which the OCR has been reduced in the last 6 months is taking interest rates to very stimulatory levels. While credit growth is easing alongside the weak economy, the RBNZ expects lenders to continue pushing financial loans through on sound business propositions, which will support the economy’s recovery.

Additionally, the changes in monetary policy settings and stimulus from fiscal policy, together with the sizeable exchange rate depreciation, will act to further support the NZ economy. Bollard hopes to see activity gradually picking up after the middle of 2009.

Looking for a new mobile phone? If you never got on the iPhone NZ bandwagon (or your blackberry needs and update), you’re in luck.

Google Phone has been confirmed for release in New Zealand within the first half of this year. The phone, which uses Google’s open source operating system Android, will be available on the Vodafone network.

The Google Phone, a second generation version of the T-Mobile G1, will feature WiFi, a 3.2 megapixel camera, GPS capabilities and a touch keyboard.

We’re off to a cracker year on NZS.com, launching our new look this week and breaking a milestone barrier for page views last month - we hit the one million mark!

That’s right, NZS.com breaks a million page views, keeping us up with the increasing growth that the global online world is experiencing. Throughout 2008 we averaged 850,000 page views per month but for the first month of 2009 we soared to 1,075,401 visitor page views. Reaching this milestone is a great indication of the growing importance of New Zealand search.

Despite the predicted economic downturn in 2009, online marketing commentators predict further growth of the online industry as companies increasingly look to online marketing campaigns to increase their brand awareness and create new business.

The OCR, Official Cash Rate, has been cut for the second time in two months by another 150 base points, taking it from 5% to 3.5%.

Reserve Bank Governor Allan Bollard announced the cut this morning, which is the lowest ever since the OCR was introduced in 1999 at 4.5%.

Financial experts predict that it could drop again in coming months a further 100 points, bringing it down to 2.5%.

With interest rates now lower than ever, real estate is becoming more and more affordable, with banks already lowering their mortgage rates in anticipation of the cut. Conversely, the OCR cut is bad news for those with money in the bank who will now earn less interest on their savings.

Looking for the best job in the world? Your competition is stiff - over 200 people have applied for the job as the caretaker of Hamilton Island, off the coast of Queensland, a position which requires the successful applicant to explore the Great Barrier Reef, laze by the beach and make friends with locals.

The 6-month position will pay $180,000 NZD, and has created so much interest that the job application site has crashed today after over 800,000 visits since Monday. Technicians were forced to boost the site’s server capacity several times this morning, as applicants uploaded their one-minute video applications by the dozen.

The position is not a competition and is a genuine job listing, requiring legitimate caretaking tasks as well as the more leisurely activities which must be regularly completed. The caretaker will also get to live rent-free in a $6 million villa, and will need to report back on their experiences via blogs, video diaries and media interviews.

Launched as a viral marketing ploy to draw intention to Hamilton Island as a tropical holiday destination, it is estimated that the campaign will generate $85 million NZD worth of publicity worldwide.

Image from Flickr.

Lucky Southerners have a long weekend to look forward to this weekend with Southland Anniversary Day on its way! There’s been a bit of historical controversy around the Southland Anniversary - but Jan 19 officially marks the date and paid public day off for everyone in the Southland region in 2009.

On passing the New Zealand Constitutional Act, the marked out district of Southland did not hold sufficient population or income to be selected as one of the six regions for Provincial Government, and was thus considered a part of Otago. It celebrated the first Otago anniversary on March 23^rd in 1852, and it wasn’t until 9 years later (after a large campaign and petition) that Southland’s first regional anniversary was recognised.

However as Southland fortunes slipped below Government criteria, the region was forced to revert back to the Otago Anniversary in 1870. In 1875, the Provincial Government model was abolished in New Zealand in favour of one Central Government, and the official Southland Anniversary date was set. It has not changed since, and is now celebrated on the Monday closest to January 17 - the anniversary of the day that the intention to build the town of Invercargill was announced.