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29 Apr 2013
Forex Flash: Exogenous NZD update - Nomura
FXstreet.com (Barcelona) - Nomura Strategist Geoffrey Kendrick notes that New Zealand Prime Minister John Key updated estimates for the Christchurch rebuild over the weekend.
He comments that the cost is now estimated to be NZD 40bln, up from NZD 30bln, or nearly 20% of annual GDP. He sees that this add further stimulus potential to the NZ economy (and hence raises the possibility of RBNZ hikes), as well as potential for more NZD inflows, (either insurance-related, or to buy the extra government debt this will entail.) He feels that this positive NZD news comes on the back of further positive NZD news over the past month or two (milk prices plus lack of RBNZ intervention). he comments that NZD remains his top pick within the G10 space for the rest of 2013.
He comments that the cost is now estimated to be NZD 40bln, up from NZD 30bln, or nearly 20% of annual GDP. He sees that this add further stimulus potential to the NZ economy (and hence raises the possibility of RBNZ hikes), as well as potential for more NZD inflows, (either insurance-related, or to buy the extra government debt this will entail.) He feels that this positive NZD news comes on the back of further positive NZD news over the past month or two (milk prices plus lack of RBNZ intervention). he comments that NZD remains his top pick within the G10 space for the rest of 2013.