Welcome to the June 22 edition of the BNZ Weekly Overview.
This morning we learned that New Zealand's current account deficit is equal to 9.3% of GDP and not the 9% commonly expected in the markets. This has generated some mild weakness in the Kiwi dollar and reinforces a downward trend we expect to be in place the next 18 or so months. Nothing major happened in the interest-rate markets this week but next week we will get a review of monetary policy in the United States and words which may influence where fixed interest rates go around the world.
In our housing section we take a look at the latest monthly data from REINZ and also mention a report from the OECD looking at which housing markets in 17 countries have the greatest chance of crashing under a certain set of assumptions. We come in second behind Denmark as most likely to have a crash - but the assumptions for this to happen are very unlikely to be met here.