GDP above Reserve Bank's expectations
Westpac Weekly Commentary said earlier in the week that a strong number would leave the Reserve Bank on track to begin raising rates in June as implied in the last Monetary Policy Statement.
The GDP report which was released this morning showed the New Zealand economy expanded 0.8% quarter on quarter with private consumption up strongly, government spending firm, investment weak, and net exports down.
BNZ Markets Outlook says GDP is the first litmus test of how the economy is tracking relative to the latest Reserve Bank forecasts and is thus a factor in determining when interest rates are likely to start rising.
J.P.Morgan Weekly Prospects was in line with the Reserve Bank expecting a 0.6% rise, ASB Business Weekly was expecting a 0.5% rise, Westpac Weekly Commentary was expecting 0.7%, the market and BNZ Markets Outlook was spot on expecting 0.8% and ANZ National was expecting 0.9%.
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