BNZ Weekly Overview April 8 2009

Welcome to the April 8 2009 issue of the BNZ Weekly Overview.
- sent early because of Easter

The NZD has once again ended the week near US 57 cents with an initial rise to near 60 cents early in the week reversed on the back of very weak business hiring and investment intentions revealed in yesterday’s NZIER quarterly survey. The survey strongly implies the Reserve Bank will cut the official cash rate to 2% by mid-year and keep it low for quite some time.

Offshore uncertainty remains about the ultimate depth and duration of the global recession and uncertainty is the theme of our introductory comments this week. This uncertainty is encouraging businesses worldwide to trim activities back to their basics. Eventually there will be a recovery. But for now one would be a bit optimistic perhaps to extrapolate the 20% offshore sharemarket gains into solid signs that the worst is over.

See... WOAvril8.pdf

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