The economy is already spluttering. Credit arrears building (off low base). It’s now a deflation story.
Probably see 2% mortgage rates late 2023??
World think tank has already come with report that says RBNZ will be the first world central bank to start reducing rates with first reduction around march 2023 !!
If it's .5 they will add a lot of bluster. The RB seems to walk hand in hand with the Govt and no one wants to see first home buyers on the pavement. Look at todays news with the new wave of home buyers recent residents.
Admittedly CPI is a lagging indicator but it is at 7.3% so not quite 1% positive in real terms for the poor borrowers.
As far as new home buyers hurting they had plenty of warning but took the risk of rising rates anyway. It is not the central banks mandate to save the home owners/risk takers. if that is the case they aren't taking much risk.
Central bank actions start to look like central planning rather than price stability.
Just ask some boomers what interest rate they were paying on their mortgages.
China has just announced a temporary suspension of customs clearance and cargo releases for all Australian and New Zealand goods, including meat, dairy, agricultural products and more.
Yes like many Govt/CB around the world they are between a rock and a hard place ... we might well see dovish talk from RBNZ while still raising rates
. personally I think property consumer sentiment here in NZ will continue south .. which bank will lend to build if the builder can't give a fixed price contract ? how many FHB have the capital and income to be able to keep these bubble prices afloat ....how many young kiwis or even property investors will continue to buy up NZ property and keep the major industry in this nation afloat>>>If borrowing @ 6-7%+
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Originally Posted by Rawz
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