Australia & New Zealand Economic Outlook Central banks to tighten as bust turns to boom Sydney’s lockdown will keep a lid on Australia’s recovery for now, but booming housing markets should support consumer spending and dwellings investment in both countries. We don’t expect labour... 15th July 2021 · 24 mins read
Australia & New Zealand Economics Update New Zealand- End of asset purchases signals rates will rise soon The RBNZ today sent a hawkish signal by announcing the end of its bond purchases. While we currently expect the Bank to start hiking rates in May next year, the risk is that it will happen earlier. 14th July 2021 · 3 mins read
DM Valuations Monitor High valuations may hold back risky assets While we don’t think that risky assets are in a systemic bubble, we suspect there is limited scope for further large increases in valuations to drive their prices higher over the next few years. 9th July 2021 · 8 mins read
Australia & New Zealand Economics Weekly RBA’s central scenario may signal rate hikes soon The RBA began shifting the stance of monetary policy this week by watering down its commitment to keep rates on hold for the foreseeable future. The Bank’s central scenario is still consistent with... 9th July 2021 · 7 mins read
RBNZ Watch RBNZ tightening creeping closer We doubt the RBNZ will adjust any policy settings when it meets next Wednesday 14 th July. However, as the New Zealand economy continues to recover faster than the RBNZ expects we think the Bank will... 7th July 2021 · 7 mins read
Australia & New Zealand Economics Weekly Labour shortages to persist Job vacancies have continued to surge in Australia highlighting worsening staff shortages in almost every industry. While subdued labour mobility was an initial driver, we estimate that labour... 2nd July 2021 · 5 mins read
Australia & New Zealand Chart Pack Vaccine campaigns running into supply constraints With the more contagious delta variant spreading in Australia, half of the population is now in lockdown. This highlights the Achilles heel of both countries’ virus management: their slow vaccine... 30th June 2021 · 11 mins read
Australia & New Zealand Economics Weekly Vaccine rollout at risk of stalling Australia’s vaccine campaign has accelerated in recent months, but we estimate that the pace of vaccinations would have to double to inoculate the adult population by year-end. Unfortunately... 25th June 2021 · 4 mins read
Australia & New Zealand Economics Update New Zealand - Lasting decline in saving rate would be an upside risk The surge in consumption in Q1 resulted in the savings rate falling to a 15-year low. While we expect households to respond to falling house prices with higher savings, the rebound in GDP could be... 24th June 2021 · 3 mins read
Australia & New Zealand Economics Weekly RBA policy tightening getting closer The continued decline in the unemployment rate, along with the Fed’s hawkish shift this week will be putting a bit of pressure on the RBA. And given our view that labour shortages will result in... 18th June 2021 · 5 mins read
Australia & New Zealand Economics Update New Zealand - House prices to fall in 2022 We expect the RBNZ to impose new lending restrictions in the months ahead which, in addition to rising interest rates, should result in house prices declining next year. 17th June 2021 · 2 mins read
Australia & New Zealand Data Response New Zealand GDP (Q1 2021) The solid rise in activity in Q1 means that New Zealand easily avoided a second technical recession and we expect GDP to continue its rebound over the rest of 2021. 17th June 2021 · 2 mins read
Australia & New Zealand Economics Update Hawkish RBNZ will hike even earlier The RBNZ’s hawkish rate outlook has prompted us to bring forward our forecast for the first RBNZ rate hike from November to May next year. But in contrast to the RBNZ, we don’t think the pandemic will... 14th June 2021 · 4 mins read
Australia & New Zealand Economics Weekly Lockdowns and bond yields ease The end of the lockdown in Victoria is an upside risk to our forecast that consumption will be unchanged in Australia in Q2. Meanwhile, S&P upgraded Australia’s credit rating outlook but that has... 11th June 2021 · 6 mins read
Australia & New Zealand Economics Weekly Solid Q1 GDP more than makes up for Q2 weakness The strong rise in GDP in Q1 has prompted us to revise up our GDP forecasts for this year. And while the Victoria lockdown will weigh on consumption growth in Q2, sentiment is holding up so we expect... 4th June 2021 · 4 mins read
Global Markets Update We expect gradual increases in 10-year DM bond yields We think most developed market (DM) central banks will look through temporary rises in inflation and leave rates unchanged until at least early 2023. Even so, we expect the yields of 10-year DM... 3rd June 2021 · 4 mins read
