Why the Kiwi is doing better
than the Australian Dollar:
Australian Joblessness at 6.4 per cent January figures indicated Australian
weaknesses and possible further action towards rate cuts by the RBA. ,
By
contrast the Reserve Bank of New Zealand
expects above-average economic growth in New Zealand’s trading partners this
year. (http://www.rbnz.govt.nz/news/2015/6012239.html)
· 'The main risks and uncertainties for New Zealand relate to the
Chinese economy, and four key prices – dairy prices, oil prices, house prices
and the exchange rate.
·
An expected NZD 6 billion drop in dairy farmers’ incomes is
likely to be cushioned as farmers normally smooth spending through swings in
income.
·
Oil prices have fallen 58 percent since the end of June 2014. If
they remain around USD 50 per barrel, this would boost household disposable
income by around $600pa per household.
·
Annual CPI inflation is expected to be below the Bank’s target
band and could become negative for a period during 2015, as the direct and
indirect impacts of falling oil prices feed through the economy. The Bank then
expects inflation to move back towards the middle of the 1 to 3 percent target
band, albeit more gradually than previously anticipated.
·
New Zealand is the only country among the advanced economies
that has had a positive output gap in the past two years, unemployment rate is
low and falling, net inward migration and labour force participation is at
record levels, and business and consumer confidence surveys remain strong. '
Without any risk or responsibility
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