All Posts By

Bridget Urlich

Don’t rely on the current government for growth

By | Insights
If you believe the current economic commentary in New Zealand; then the general consensus is that we are in the midst of an economy in a slowdown phase. The ANZ...
If you believe the current economic commentary in New Zealand; then the general consensus is that we are in the midst of an economy in a slowdown phase. The ANZ Business Outlook survey highlighted that residential construction intentions had plummeted (-27.3% drop). A fall in residential investment of that magnitude is suggesting the potential to knock a full percent off GDP growth. When looking offshore, governments have been prepared to commit to large quantities of fiscal stimulus in an attempt to stimulate growth and activity, quantitative easing or legislated growth for want of a better term. The theory being, government... Read more

Continuing to lower interest rates is a policy misstep

By | Insights
At the end of March, the Reserve Bank of New Zealand released their latest statement to the market expressing their view that ‘the more likely direction of our next official...
At the end of March, the Reserve Bank of New Zealand released their latest statement to the market expressing their view that ‘the more likely direction of our next official cash rate move is down.’ The market subsequently priced in two interest rate cuts from here and the major banks have since lowered mortgage rates. Whilst households may have breathed a sigh of relief as the cost of servicing debt goes lower, retirees and income dependent investors likely preferred to look the other way. The bigger question here is, does the state of the underlying New Zealand economy really warrant... Read more