The Reserve Bank of New Zealand is expected to reaffirm its no-cut stance, cementing yield-related strength for a while yet.
I'm U.S. dollar bullish over the next three months, largely because the Fed will go to 4.75 percent and they'll leave the door open to 5 percent.
Confidence is a critical element if the economy is to maintain forward momentum. Expect growth to remain tepid but a recession to be averted.
Such levels have typically coincided with a short-term contraction. After five years of stellar growth, the economy is now entering a more sedate growth phase, as is required to alleviate pressure on resources.
There's not a lot of investment opportunities out there, so yield is still the default play for the market. But when the New Zealand dollar turns, it will turn aggressively, and if we don't get yield demand it will fall by a country mile.
Clark and Cullen have proven they are good at making governments work. No one will be in a hurry to call an early election.
Is the economy in the midst of a recession? We find this difficult to believe.
The risk profile for inflation is just too significant to ignore. Ensuring inflation expectations remain anchored will be the Reserve Bank's primary aim, and this will require the talk to remain tough.
The risk profile for inflation is just too significant to ignore.
There in something in today's release for everyone.
