Interest rates look set to climb further as retail sales boom
Monday 16 August 2004
Yet another surprisingly strong economic number today has economists talking up chances of another interest rate hike beyond that widely expected for September 9.
By The LandlordRetail sales grew at a seasonally and inflation adjusted 0.8 per cent in the June quarter confounding economists' predictions of 0.3 per cent and showing no sign of a widely forecast economic slowdown.
Excluding car sales and repairs and petrol sales, sales were even stronger with a 1.5 per cent rise.
Today's data comes hard on the heels of Tuesday's job numbers which showed unemployment had fallen to a 17 year low of 4.0 per cent, better than the forecast 4.3 per cent.
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It looks like the sleeping giant of New Zealand’s housing market could be stirring, with new REINZ data showing that both sales and prices in Auckland are up.
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.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.