Tony Alexander

Economic Commentaries

Weekly Overview 3 November 2016

Thursday November 3rd 2016

This week has brought lots of positive news for our economy in the form of strong 1.4% jobs growth during the September quarter, strong business sentiment plus investment and employment intentions, and a sharp jump in dairy prices. These factors help underpin our ongoing view that growth prospects are good for the NZ economy and one can’t help but think these developments will help keep net immigration inflows at high levels for a number of years to come.

Inflation however remains hard to find so the chances are high that the Reserve Bank will cut the official cash rate again next week in one final move for this unusual period. But watch for fixed interest rates rising rather than falling as funding costs have increased noticeably in recent weeks.