New Zealand is experiencing a migration boom with the net loss of ourselves to Australia plummeting from near 40,000 in mid-2012 to just 15,000 in the past year. The all-country gain for the NZ population is now 29,000 and headed toward 40,000. The implications are obvious for the pace of economic growth.
Wholesale interest rates have changed by little this week but we expect rates to creep up heading toward the next official cash rate review on April 24 at which we expect another 0.25% increase. The NZD this week has generally crept higher with good support from an easing of worries about Russia’s invasion of Crimea, and in spite of a lengthening string of weak data coming out of China.