Consumer confidence stages record rebound

Consumer confidence staged a record rebound in the September quarter, the Westpac McDermott Miller survey of Consumer Confidence has found. Here's what Westpac had to say.

The rebound is broad based, led by an improvement in perceptions around the short term economic outlook. The recent slump in consumer spending looks to have been arrested, and risks outstripping the RBNZ's September expectations. However, domestic monetary policy will take its cue from world financial market developments over the next few months. We expect the OCR to hit 6.5% in January 2009 as the RBNZ fights to offset the rising cost of funds.