The economy's getting its breath back
BNZ Markets Outlook illustrates the situation saying it is like watching a jogger walking lampposts to get their breath back (having sprinted too much in earlier laps), not one about to collapse in a heap on the footpath.
"All that the recent data has made us unsure about is the point at which the jogger feels comfortable enough to resume, well, jogging."
BNZ says it still believes the economy is making good underlying progress, that GDP growth will strengthen this year and that inflation will become more of a niggle sooner than many appreciate, thus forcing the Reserve Bank to resume nudging the cash rate higher.
ANZ Market Focus also responds to calls to cut the OCR saying while no-one can debate the weakness we are seeing across core pockets of the economy, a fair portion is structural as the New Zealand economy returns to a more balanced growth path.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
