A snippet from BNZ on the New Zealand economy, referring first to yesterday's ANZ business survey, which was ugly indeed:
- the ANZ business outlook survey painted a bleak picture of the economy, with the own-activity indicator falling further below average to minus 4.7, and other indicators also consistent with a sluggish economy.
Goes on:
- When combined with the recessionary level of consumer confidence, and the slumping housing market, the signs of an economic recession, or thereabouts, are clearly visible.
And, on inflation:
- To boot, another 200bps of rate hikes on the RBNZ’s central forecast are deemed necessary to bring inflation back to target. The survey’s inflation indicators all remained at historically high levels, with the only “good” news is that the slippage in pricing intentions indicator is now more consistent with 6% than 7% CPI inflation.
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Have to wonder if NZ's economy is leading other DM economies in recession risk indicators... Yikes.
NZD/USD update
