BNZ economists say economy is unbalanced

The economy's being described as horribly imbalanced.

Bank of New Zealand economists say domestic demand is both rampant and unsustainable.

It says this is reflected in both the burgeoning current account deficit and rising inflation.

BNZ says there's a stretched labour market, infrastructure constraints and an appalling household savings rate.

It says with this backdrop, the Reserve Bank will be forced into raising the cash rate again.

Average incomes have risen nearly six per cent in the past year, to 586 dollars a week.

The inequality between men and women remains, with men making nearly three hundred dollars more a week on average.

Statistics New Zealand says the average hourly wage has risen to 19 dollars 30.

The highest earners are men aged 45 to 49, who are raking in nearly 11 hundred dollars a week.

Aucklanders are making the most money overall, closely followed by Wellingtonians and Cantabrians.

Queenstown's alfresco dining scene may become a thing of the past.

The council's proposing up to 200 per cent rent hikes for outdoor tables.

The cost could rise from about 1200 dollars a year to 3,500, for some eateries.

Southern Lakes Restaurant Association president Tony Robertson says times are tough, with restaurateurs already paying up to 1200 dollars a square metre per annum in building rent.

He says the resort's over-supplied with eateries.

Mr Robertson says staff shortages and the increasing number of serviced apartments are also taking their toll on the industry.

Midday markets

The NZSX 50 is down nine points to 3415.

Telecom is down four cents to $5.90, Vector is down five cents to $3.11.

The New Zealand dollar is buying 69.32 US cents, 91.67 Australian cents, 57.77 euro cents, 78.97 yen and 39.21 pence.

The TWI is 70.66 and the 90 day bank bill rate is 7.24 per cent.

- NEWSTALK ZB