Markets

Westpac forecasting deflation for NZ in 2016

From Westpac economists in their Economic Overview (published once a quarter) for New Zealand

  • Say the CPI will be down 0.1% in both Q2 and Q3
  • Inflation to bounce into the Reserve Bank of New Zealand's 1 -3% target band in 2017

They also suggest that low inflation expectations are a 'major worry' for the RBNZ

-

Last week we saw NZ rate cut expectations trimmed after Governor Wheeler spoke, saying he wanted some more time to assess the data.

-

While I'm on NZ and WPAC

  • WPAC have lowered their 2015/16 dairy payout Fonterra forecast to NZ$4 kg (from $4.15 previously forecast)
  • And for 2016/17 to $4.60 (from $5.20)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos