BNZ chief economist Tony Alexander is whistling a more positive tune in this week's BNZ Weekly Overview, suggesting that while the green shoots appearing in some countries overseas may be under scrutiny, in New Zealand the flow of data is "most definitely on the right path".
Alexander also suggests that he personally would be prepared to pay a bit more if he were a borrower at the moment, in order to get some "insulation" from the upside rate risk potentially lurking around the corner two to three years from now .
"Just in case global inflation jumps up as a result of the current loose monetary conditions," he says.
This follows on from last week's Overview, in which Alexander stated he still favoured fixing for three years at 6.99% - because it is 1.1% below average.
"It gives me good cash flow certainty for an extended period in an environment where lots of other things are extremely uncertain," he said.
