NZ: Constructive view on medium-term growth outlook - ANZ

Analysts at ANZ suggest that the global economy is in a strong and synchronised upswing and  this strong global picture is one of the main reasons they retain a constructive view on New Zealand’s medium-term growth outlook.

Key Quotes

“The impact of the strong global picture can already be seen in the likes of the record terms of trade and December’s all-time high in export earnings. The NZD has also clearly benefited. But we would question how much further the latter theme can run, especially with interest rate differentials to the US narrowing sharply. The shine came off the NZD Friday night and we would not be surprised to see this continue. The RBNZ should remain cautious and watchful in this week’s Monetary Policy Statement, and we expect Q4 labour market figures to show a reversal from Q3’s phenomenal strength.”