RBNZ leading the highest OCR since 2008, having increased 500 basis points in eleven hikes since August 2021; the fastest and largest monetary policy tightening on record.....
I'm Gutted if only this latest rate rise was a week away ... have to convert a good chunk of AUD to NZD pay Mr IRD !!! ... just on todays spike in NZD will cost me $800 !!!
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
Still a way to go to get OCR to 8% …not that many years ago
yeah back when we purchased a house its now more that tripled in value...and even more in rebuild cost to replace .... now match that up to incomes .... I can't see how NZ consumers could continue to keep above water with such high household debt levels at say 8%
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
I guess he just wants to crush the wage - price spiral. Difficult if you work against a government which uses private company resources as ammunition to increase inflation by pushing the minimum wage up and up and up.
They say never fight the FED, but maybe this is a case of never fight a government hell-bound to increase inflation?
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
yeah back when we purchased a house its now more that tripled in value...and even more in rebuild cost to replace .... now match that up to incomes .... I can't see how NZ consumers could continue to keep above water with such high household debt levels at say 8%
Thats why exactly previous 8% levels will feel like 15% now ...so not possible ....but more Mr Orr plays to the galleries and make fun of Govt ...more soon the rates will " NEED " to come down ....
Todays move is actually not bad for stocks ...as it brings the interest rate pivot led recovery much sooner ...
From NZX perspective ...let Mr Orr deliver another 50 bips next meeting and then by last qtr our market will be rejoicing in full bloom
Big thumbs down from Bond markets ...OCR up, 10 year bond yield down ....it seems market does not care ...actual rates will not rise ...thats why RBNZ delivered 50 bips as otherwise actual rates wud have started declining ...which is too early as inflation still pretty high .
yeah back when we purchased a house its now more that tripled in value...and even more in rebuild cost to replace .... now match that up to incomes .... I can't see how NZ consumers could continue to keep above water with such high household debt levels at say 8%
Originally Posted by bull....
Reply With Quote
Bookmarks