BNZ Weekly Overview - May 24 2007

Welcome to the May 24 edition of the BNZ Weekly Overview.

This week we take another look at the government's budget last week and explain how what has been given with one hand has been more than taken away with the other. The big news of the week however was the announcement of a record projected milksolids payout by Fonterra for the coming dairying season which is going to greatly boost growth in the economy. But it will also add to inflationary pressures and solidifies an outlook for a continued high exchange rate while placing even more pressure on the Reserve Bank to increase interest rates again and keep them high for a very long period of time.

ENDS

See... BNZ Weekly Overview, May 24 2007

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