NZ: Exceptionally strong imports - TDS

New Zealand’s January trade deficit (-$NZ556m, mkt flat) masked the strongest Jan for exports as imports were exceptionally strong, led by capital imports such as food processing machinery and ships/aircraft/tractors, notes the analysis team at TDS.

Key Quotes

“And yet the cash rate languishes at record lows while we wait for the 'new' RBNZ mandate and policy process. Finance Minister Robertson in Singapore today said "... it’s always very dangerous to speculate on exactly what level you want the currency to be, but you know a strong New Zealand dollar reflects a strong economy”.”