BNZ sets their new forecast at NZD 6 / kgms, their previous forecast was NZD 6.30
Dairy prices impact on a major NZ export. The cite various factors but the main impact coming from higher volume production
- One of the downsides of the stellar run up to peak milk production in October this year is that it has put downward pressure on dairy prices.
- NZ milk production in October was 6.5% higher than a year ago, lifting production for the season-to-date 6.0% above the same period last year. The increase has been stronger than we anticipated and sees us lifting our forecast for milk production growth for the season as a whole up to 5% (from 2% previously).
- This would see milk production easily reach an all-time high, surpassing the previous peak in 2014/15.
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Also from BNZ today, they have lowered their interest rate profile outlook on the RBNZ
Their summary:
- We lower our interest rate profile
- But still have a strong tightening conviction
- Rate normalization the driving force
- But RBNZ flatlining
- Will take serious inflation to break the slumber
more to come
