NZ Business Confidence Surges on Rising Uncertainty

Business confidence in New Zealand jumped by 19 points to 56 in July, according to ANZ's Business Outlook survey. This marks a significant increase from the previous month. Inflation expectations also eased slightly, falling from 3.36% to 3.14%. However, cost and pricing intentions remain high, with a net 47% of businesses expecting to raise their prices in the next three months.

Interestingly, when asked again later in the month, activity indicators were lower than expected, while inflation indicators rose higher. Oil prices turned north during this period, and the Reserve Bank of New Zealand (RBNZ) hiked the Overnight Cash Rate (OCR) between the early and late responses.

The Federal Open Market Committee (FOMC) in the US also met to discuss monetary policy. They decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, citing economic activity expanding at a solid pace despite elevated uncertainty.