BNZ Weekly Overview - December 6 2007

(See... WODec6.pdf)

Welcome to the December 6 edition of the BNZ Weekly Overview.

This week we are running our last survey for the year. If time permits please click on the URL below and let us know whether you think the economy will get better or worse over the coming year. More importantly let us know how things are in your industry at the moment. Results will be released early next week. Many thanks to those who have contributed regularly during the year.

http://www.closer.co.nz/bnzeconomist.asp

This morning we saw the Reserve Bank leave the cash rate at 8.25% but warn of many inflationary pressures going forward. This implies continuing very strong support for the Kiwi dollar which has risen today, and very little scope for interest rates to decline in the coming year. In contrast overseas central banks are noting increased worries about the global economy and ructions in financial markets leading to rising expectations of cash rate cuts in the near future with a cut expected in the United States next week.

ENDS

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