‘The economy is looking quite normal verging on strong and in that sense it’s at odds with a cash rate which is really well below any levels of normality.’ – Craig Ebert, BNZ
Retail sales in New Zealand rebounded sharply in the first quarter, beating analysts’ expectations, amid higher car sales, official figures showed on Monday. Statistics New Zealand reported that retail sales volumes climbed 1.5% on a seasonally adjusted basis in the three-month period to March, up from a 0.6% gain in the preceding period, whereas analysts anticipated a slighter increase of 1.1%. The figures are set to please the Reserve Bank of New Zealand, which surprised markets at its last policy meeting, expressing concerns over the economy that performed stronger than expected over the past couple of months. However, analysts said that strong retail sales would not be enough to change the RBNZ’s policy stance. The March quarter’s sharp rebound was mainly driven by higher demand for cars. Back in the Q1 of 2017, sales of automobiles surged 5.9%, pointing to growing population and low car prices. On an annual basis, sales were up 4.6%, surpassing expectations for a 4.4% gain. After the release, the New Zealand rose from 0.6853 to 0.6870 against its US counterpart.
