This week’s Overview is on the short side and I don’t think there is anything in it to set the world alight so if you are pressed for time go back to whatever you were watching on Netflix.
I make a quick note about travelling to the Waikato and Taranaki, mention the way regional housing markets are being driven not by the state of their economies but Auckland investors, local investors jumping on the bandwagon, and everyone adjusting to lower levels of interest rates going forward and eventually perhaps higher net average migration inflows into NZ. When that truly happens the investors may switch their focus again back to Auckland. That might coincide with currently nervous and rule-constrained Mum and Dad Chinese investors poking their heads out beyond the mainland again next year.
In the interest rates section I discuss the rise in bank offshore funding costs, and in the FX section note the falling British Pound resulting from the markets starting to price in a UK exit from the floundering European Union. Belgium has just suspended its membership of the Schengen zone reflecting the EU’s inability to control its external borders.