NBBO survey adds fuel to the rate hike fire
Its Economy Watch says the survey implied that: GDP growth will soon be above trend; inflationary expectations are pushing higher; businesses know that rates are headed higher; capacity utilisation is rising; and even the lagging indicators of employment and investment are proving to be robust.
"This being so, we feel more assured in our view that the Reserve Bank is likely to pull the trigger at next week's Monetary Policy Statement."
ANZ Market Focus also believes the Reserve Bank is more likely than not to raise rates next week and while global financial turmoil is a consideration, it has been pleasantly surprised by how muted the impact has been so far, especially in New Zealand. It says global volatility died down considerably late last week.
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