Tony Alexander

Economic Commentaries

Weekly Overview 18 August 2016

Thursday August 18th 2016

This week we note that if booming retail spending and employment growth are not causing the rate of inflation to rise then trying to encourage people to borrow more and spend more via lower interest rates probably won’t help the RB reach its goal of inflation back near 2%. Yet two more interest rate cuts remain likely in November and February.

We also list official Statistics NZ projections of population growth for each NZ region and local authority area. This is so all those people looking at investing in regional housing markets do so with full awareness of how local population pressures are likely to develop. For your guide, in some locations in the media recently with people buying very low priced properties the projections are for rapidly declining populations. Be careful when you leave the bright city lights.