Bank desk views on today's NZIER........>

NEW ZEALAND: Bank desk views on today's NZIER QSBO:

- ANZ: Pessimism is flowing through into firm decisions, although investment and

hiring intentions are generally still positive. Today's data are consistent with

a softening in annual GDP growth - challenging the RBNZ's outlook. We continue

to believe the next OCR move is more likely to be a cut.

- ASB: Details were softer than we exp. & point to a deceleration in GDP growth

over H218. However, forward-looking indicators remained relatively upbeat.

- BNZ: There was confirmation that the negativity in biz sentiment is not being

driven primarily by exp. of weakening demand. Rather a combo of rising input

costs & frustration with both gov't policy & the inability to find staff, that

is pressuring conf. Therefore one would expect biz sentiment to be a less

effective indicator of activity than might have been the case in the past.

- Westpac: The details were somewhat mixed. Pricing intentions remain relatively

stable after tracking higher over the last couple of years as firms remain

circumspect about their ability to pass on higher costs. Today's data will have

done little to dissuade the RBNZ of the risk surrounding the area.