The path forward is getting grimmer for the New Zealand economy
The path forward is getting grimmer for the New Zealand economy
15 November 2022
Westpac's latest economic overview warns the only thing saving us from an outright recession, is the recovery in international tourism.
It's warning the Official Cash Rate is now likely to reach a peak of five-percent due to persistently high inflation, but the full effects of rising interest rates won't be seen for some time.
Infometrics economist Brad Olsen says many people on low fixed-term mortgages will start to slash their spending, when their rates eventually go up.
Olsen says we should see a swift hit to household finances next year, which might bring a bit of relief when it comes to pricing pressures, because people won't have enough money to spend.
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