Big Drop In Business Confidence

The Dominion Post is reporting a big drop in business confidence in Wellington. Couple this with the reduced dairy output as a result of poor rain in Taranaki and the Waikato, and conditions might not be as potentially inflationary as the Reserve Bank thinks. We hope that both the Reserve Bank and those speculating on the continuation of high interest rates in New Zealand (by borrowing in Japan to invest in NZ$ high interest accounts) read this business confidence survey closely.