According to the latest New Zealand Institute of Economic Research Quarterly Survey of Business Opinion , “New Zealand's business confidence in the fourth quarter of last year hit its lowest level since 1974 as companies grapple with higher interest rates, cost pressures and soft demand.” The survey also mentioned that business confidence is the weakest since the survey started in 1970 if adjusted seasonally.
“The survey was undertaken following the more hawkish than expected central bank meeting in November and this was weighing on sentiment,” said NZIER along with the findings.A net 70% of firms surveyed expected general business conditions to deteriorate compared with 42% pessimism in the previous quarter.A net 81% reported increased costs in the December quarter.The news should have ideally weighed on the NZD/USD prices as it challenges the Reserve Bank of New Zealand’s hawkish bias.
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