Waiting for the recovery - Quarterly Predictions, June 2011
01 June 2011
In a holding pattern
“The economy is in a holding pattern, but the preconditions for a domestic recovery are strengthening. The Canterbury reconstruction will add to activity next year. We expect the economy to recover strongly from just 0.3% growth in 2011 to 3.7% in 2012.” NZIER’s Principal Economist Shamubeel Eaqub said.
We expect the RBNZ to hold the OCR unchanged at 2.5% through 2011. As the recovery becomes apparent interest rates will have to rise to curb gathering inflationary pressures.
The details are in NZIER’s June 2011 Quarterly Predictions – a comprehensive and independent commentary on the New Zealand economy and forecasts covering the next five years. Details and insights are available exclusively to NZIER members.