Welcome to the December 9 issue of the BNZ Weekly Overview
This morning the Reserve Bank left the official cash rate unchanged at 3.0% which was no surprise. But they have shifted
their expectation for the next rate rise out a few months to June and so have we. Weak manufacturing and construction
data received this week help make the shift easy to understand along with the results of our monthly survey which show
overwhelmingly that respondents are optimistic about 2011 but are still experiencing very tight conditions at the
Offshore the US labour market has turned out weaker than expected but some new fiscal loosening and a few other firm
bits of data have supported the greenback and pushed bond yields up quite sharply. In Australia interest rates have also
edged up as this afternoon?s employment report was yet again much stronger than expected. The Australian economy is
rapidly running into capacity constraints and the implications for us are a lower NZD against the strong AUD and
additional attractiveness for skilled Kiwis of hopping over there.
Be good with money
Bank of New Zealand (BNZ) has been a big part of New Zealand life for over 150 years since its foundation in 1861. The
bank employs over 5,000 people and has more than 170 retail stores and 32 Partners business centres across the country.
Passionate about enabling a higher achieving New Zealand, BNZ works with personal, business, agri, and private wealth
clients, helping them grow and make their goals a reality.
A subsidiary of the National Australia Bank Group of companies, BNZ is governed locally by a Board of Directors and
strives to help New Zealanders be good with money.