BIS central bankers’ speeches  9  Domestic trading activity  Source: NZIER Quarterly Survey of Business Opinion  Reconstruction, is projected to eventually provide a boost to demand similar to the mid2000s housing boom. Residential and non-residential investment will lift growth sharply. Spare capacity and labour will be absorbed rapidly, and inflation pressures will pick up from current low levels.
We will need to keep monitoring this to judge whether the level of the OCR continues to be appropriate. The outlook for rebuilding in Canterbury remains subject to a high degree of uncertainty.