Banks raise projections for growth
Thursday 24 June 2004
Growth in the March quarter is shaping up as a "stunner", with market expectations of about 1.6 per cent expansion - just over 4 per cent for the year, according to National Bank.
By The LandlordThat may mean either one or two more interest rate rises by the Reserve Bank to dampen down the economy and rein in inflation, National Bank said.
Official gdp figures for the March quarter are due out on Friday.
A 25 basis point rate rise to 6 per cent on the official cash rate looks like a "done deal", National Bank said, but pushing interest rates beyond that carried economic risks.
The direct impact of another 25 points up in September would be small, but it could damage confidence, so the indirect effect could be bigger.
Westpac Bank economists said a March quarter result above 1.5 per cent was likely to keep the Reserve Bank "hawkish" at its next announcement on July 29. Westpac tipped 1.5 per cent growth for the three months, though forecasts range up to 2.3 per cent.
Read More - Opens in a new window
Commenting is closed
There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.
LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.