Next week’s OCR call. Next Wednesday the Reserve Bank will review monetary policy settings, including the official cash rate. It’s the first review since 24 November and a lot has happened in the three months since. The economy has been overheating, with inflation high and likely to go higher and unemployment rock bottom. All the […]
global dairy trade
Primary sector returns strengthen export-led recovery
Farmers’ hard work in leading New Zealand’s export-led recovery from COVID-19 is being rewarded with high prices forecast for milk and very strong returns for meat, says Trade and Export Growth and Agriculture Minister Damien O’Connor. Fonterra announced today a record predicted milk price of $7.90 to $8.90 for the coming season. The mid-point of […]
Economic Week – October 22
Inflation shocker, thief on the loose. This week saw the release of inflation data for the September quarter and it was a shocker. Inflation is an insidious ‘thief in your wallet’, to quote a former Reserve Bank Deputy Governor, eroding purchasing power and savings and distorting decisions on spending and investment. The thief is becoming […]
Economic Week – October 8
OCR increased. After holding off in August, the Reserve Bank did what it had been widely expected to do, this week lifting the Official Cash Rate from 0.25% to 0.50%. This was the first OCR increase in more than seven years. The Reserve Bank had to strike a balance between the economic hit caused by […]
Economic Week – September 10
Commodity prices slip. The ANZ Commodity Price Index was down again in August but it’s still well ahead of the same time last year and remains near its record high set in June. The World Price Index was down 1.6% in August compared to July, following a 1.7% decline over the previous month. The Index […]
Economic Week – June 4
Record high for commodity prices. The ANZ Commodity Price Index has had another positive month, with the World Price Index up 1.3% for the month of May and up 24.4% for the year. The Index has risen for eight consecutive months and it has been pushed to a new record high (at least since the […]