April 23 2009 issue of the BNZ Weekly Overview

Welcome to the April 23 2009 issue of the BNZ Weekly Overview.

The NZD has fallen to just over 55 US cents this week with some downward pressure from a downbeat report on NZ by the OECD, perhaps some rise in world growth worries associated with the worrying six monthly report by the IMF, and anticipation of an increased chance the RB cuts the cash rate 0.5% next week rather than 0.25%. In fact with those expectations altering slightly and the surge in demand for fixed rate borrowing now easing wholesale fixed borrowing costs have eased over the week – though still sit above levels of five weeks ago.

The monthly migration numbers have shown another strong net migration gain. While this backs up our less than horrible view on the housing market, it doesn’t change the fundamental fact that with unemployment jumping up and the world economy still facing major downside risks, the NZ housing market is at best close to bottoming and certainly not rising.

Weekly Overview April 23

ENDS

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