Bite-sized video updates on the New Zealand economy and markets.
The Reserve Bank expects to keep interest rates low for a considerable time. Although inflation is looking a bit stronger in the near term, we don’t think the conditions are in place for a sustained rise.
GDP growth in the December quarter was held back by some temporary factors that will soon reverse. But the underlying story is that the economy is still only growing at a modest pace, much of it coming from population growth.
GDP growth looks to have been weighed down by some temporary factors in the December quarter. The broader story of moderate, population-driven growth appears to be intact.
Firms remained upbeat in early 2017. Strong net migration inflows and rapid growth in visitor arrivals remain important factors boosting demand, and these trends look to have a bit longer to run yet.
We hope you find these updates helpful in shaping a view of what's in store for you beyond the farm gate.
Dairy prices have slide since the start of the year, as milk production in New Zealand, Europe and the US has exceeded forecasts.
World prices for our agricultural exports have held up well over the new year. But the strong New Zealand dollar has eroded the returns to farmers.
We look at the demand and supply factors that are pushing dairy prices higher, and note that the world is shifting to an environment of rising rather than falling interest rates.
World dairy prices have surged even higher, on expectations of a steep drop in milk production. We remain sceptical that volumes will be as weak as forecast, but for now the outlook for this season’s payout is looking brighter.
All opinions, statements and analysis expressed are based on information current at the time of writing from sources which Westpac believes to be authentic and reliable. Westpac issues no invitation to anyone to rely on this information current t time of writing and intends by this statement to exclude liability, to the extent permitted by law, for any such opinion, statement and analysis. The content of this material is a guide only. It does not take into account your personal financial situation and goals. You should obtain independent professional advice.