Analysts at ANZ note that the New Zealand’s macroeconomic data flow has turned patchier around the edges of late; particularly some of the more forward-looking data, such as the activity indicators out of the ANZ Business Outlook survey.

Key Quotes

“The RBNZ made it clear last week that it is concerned about downside risks to the growth outlook, and entirely unconcerned about the looming cost-push lift in inflation.”

“The Government, meanwhile, argues that while the economy might be going through a bit of a bumpier patch, the fundamentals are strong and we’ll soon bounce out.”