NZ: Economy has enough momentum to navigate periods of uncertainty - ANZ

In view of the analysts at ANZ, a notable shift in tone from key global central banks raises some key questions with regards to the global liquidity cycle, asset valuations, the trajectory for the NZD and by association, the stance of the RBNZ but they think that the NZ economy has enough momentum to navigate such periods of uncertainty.

Key Quotes

“The USD is in the box seat and yields have risen. But what does the shift in central bank stance and tightening in US financial conditions mean for future growth prospects? Do higher real yields mean asset valuations are at risk of realignment? Additionally, political risks still abound with markets less data-sensitive and more reactive to non-data developments. Plenty of risks and uncertainties remain, but at this stage we are taking a watchful stance when it comes to assessing our own forecasts, and we still believe the New Zealand economy has enough momentum to navigate such periods of uncertainty.”

“In data this week, Q4 GDP figures are expected to show the economy expanded 0.7% q/q (perhaps with some downside risk), while consumer confidence figures and the Business-NZ indicators will provide updates on early 2017 momentum.”