New Zealand At A Glance
The mood of the country appears to have stepped up a tad over the last few weeks. You wouldn’t describe the business sector as being optimistic but confidence levels have certainly ticked up enough to suggest the economy is approaching its cyclical low. Consequently, the risk we may face negative interest rates has reduced markedly particularly given that headline inflation now looks set to head above 2.0% within six months and the labour market remains tight. Moreover, fiscal policy looks increasingly likely to be supportive of growth over the medium term.