Watch video on YouTube here. Watch video on our video page here. Bernard Hickey delivers an Economic Weather Report on the latest National Bank Business outlook survey of business confidence, which shows businesses expect conditions consistent with GDP growth of 3-4%. The last time New Zealand had growth that strong the Reserve Bank had the Official Cash Rate at over 7%, yet this time it seems determined to keep it at a record low 2.5%. It's time the Reserve Bank looked to start increasing it, despite apparently low inflation right now. At some stage all the fuel from monetary and fiscal stimulus both here and overseas is going to catch fire. The Reserve Bank needs to be applying the protective foam of a rate hike now to ensure the flash fire doesn't burn too hot. View our confidence charts here.
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