Tony Alexander

Economic Commentaries

Weekly Overview – March 6

Thursday March 6th 2014

This week we have learnt that businesses in New Zealand intend hiring a lot of people and investing a lot in capital equipment. Unsurprisingly then with this sort of positive sentiment the NZD has risen back above 84 cents against the US dollar.

Next Thursday morning the Reserve Bank will review the official cash rate and the chances are strong that they will raise it from 2.5% to 2.75% in what will be an amazingly uncertain period of rate rises in a new post-GFC world.  Personally, were I a borrower currently, I would be shifting some of my debt to a three year fixed term – with the BNZ of course at 6.35%!