Tim Bowring
Tim Bowring
continues currency dollar economic recent suspect weak zealand
The New Zealand dollar continues to be hampered by the recent swag of weak economic data. We suspect the currency will continue to come under pressure.
although calling data downward drop finally hikes impact late month negative rate remain taking trend volatile wary
The significant drop in residential approvals (excluding apartments) suggests the impact of consecutive rate hikes in late 2005 may be finally taking hold, although we remain wary of calling a downward trend after just one month of negative data in this volatile series.
easing frowned housing news reserve sustained
The news will be frowned on by the Reserve Bank, which has yet to see a sustained easing in the housing market.
business confidence deficit easing economic suppress trade
Plunging business confidence and easing consumption should suppress import growth. Should the economic slowdown be more pronounced than expected, the trade deficit may have benefited.
bank believe domestic easing economy hikes hold inflation late rate rates reserve successive
With successive (interest) rate hikes in late 2005, inflation easing and the domestic economy in a slowdown phase, we believe the Reserve Bank will keep rates on hold over the near-term.