Welcome to the January 26 2012 issue of the BNZ Weekly Overview.
We have not learnt much new about the NZ economy this week apart from a small rise in consumer sentiment, fall in job advertising, cut in Treasury’s fiscal projections, and completely expected retention of the 2.5% official cash rate at this morning’s review by the Reserve Bank.
Welcome to the January 26 2012 issue of the BNZ Weekly Overview.
The Kiwi dollar has however risen firmly against most currencies including the greenback against which it now sits just below 82 cents.
Over the year the chances are that NZ growth will be disappointing in light of the continuing risk of implosion in Europe, oil price shock from building tensions involving Iran, delaying of Christchurch rebuilding because of continuing earthquakes, and absence of a generalised consumer spending surge due to reduced labour market strength and worries offshore.
Nevertheless, with still firm export prices though with declines more likely than rises, good long term prospects supplying food and fibre, and portfolio divestment away from Europe, the Kiwi dollar is likely to have a firm tone all year.
Best regardsTony Alexander
Any views expressed in this publication are the views of Tony Alexander and do not necessarily represent those of BNZ, or its related entities. The information in this publication is provided for general information purposes only, and is a summary based on selective information which may not be complete for your purpose. To the extent that any information or recommendations in this publication constitute financial advice, they do not take into account any person's particular financial situation or goals. Bank of New Zealand recommends that you seek advice specific to your circumstances from your financial adviser. Neither Bank of New Zealand nor any person involved in this publication accepts any liability for any loss or damage whatsoever may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this publication.
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