NZ business confidence softer but still very solid - ANZ

FXStreet (Bali) - Cameron Bagrie, Chief Economist at ANZ, notes that the overall NZ business confidence tone was marginally less upbeat than expected but still very solid.

Key Quotes

"The overall tone was marginally less upbeat than expected (a range of indicators eased) but still very solid and positive - think about margins of excellence. Businesses have pared back activity expectations but remain positive, and nuances still flag a 3% plus growth trajectory for the economy overall."

"Inflation nuances were subdued but will be impacted by petrol price falls. That said, they are still low in general. A Goldilocks message remains. There was something for the hawks, given rising capacity utilisation, strong employment and evidence of skill shortages, but not much else. These factors will need to be watch (given the obvious inflation risk) and the RBNZ will remain alert to this message. But it is still a story consistent with stable OCR settings."