Is there any strong evidence yet that businesses are backing their high levels of confidence by boosting capital spending? Not really.
The world is awash with such a long list of risks that it would be a miracle if we get through the next three years without some major volatility in the financial markets. Borrowers should recognise this uncertainty by pursuing a mix of fixed rate terms alongside floating rates, and consider how much debt they can safely carry.
The NZD has fallen about 2 US cents this week on the back of strong expectations that US money printing tapering will start soon (US data have been good this past week).