Key economy summary from the NZ Treasury monthly report
In brief:
- Expectations of steady business activity and higher dairy prices point to the near-term growth outlook stabilising, but still weaker than in the Budget Update.
- Inflation remains low despite some support from higher tradables inflation as a result of the fall in the New Zealand dollar.
- Strong population growth continues to boost housing demand, with some spillover beyond Auckland.
- A weaker outlook for global growth, particularly for emerging economies, continues to present a risk to the New Zealand economy.
This is not new news from NZ, and hence it has a negligible impact on the currency. But a useful summary nonetheless. the full report can be accessed from here if you're interested