NZ: Stronger saving performance needs to continue - ANZ
In view of analysts at ANZ, a stronger national saving performance of NZ economy has helped keep the current account deficit in check.
“With more restrictions and scrutiny regarding offshore borrowing, the ability to ramp it up as in the past to fund a domestic saving shortfall is limited. That implies a stronger saving performance needs to continue, as the alternative is a weaker investment backdrop, which wouldn’t be welcome. However, not all sectors have been pulling their saving weight. Households continue to be the laggard. But with the housing market soft, and expected to remain so, we do think that will change – even if only modestly – resulting in a slower pace of consumption growth going forward.”
“In data this week, the RBNZ’s Financial Stability Report will be perused for any signs of a plan regarding the easing of the LVR restrictions. Our November Business Outlook will be watched for any reaction to the new coalition announcement, while OTI figures are expected to show the terms of trade hitting all-time highs.”