Results: Global Economy
A global interest rate shock is underway
As a result of annual inflation rates surprising on the high side overseas, recent renewed increases in energy prices, and rising ...
A new 'least regrets' policy from the Reserve Bank of NZ
On May 25, the Reserve Bank of New Zealand told us that they have decided to implement a new “least regrets” policy which is compl...
Shorter fixed term mortgage rates preferred
I sometimes struggle to remain polite when journalists ask me if the rising rates environment means now is a good time to fix for ...
Monetary policy tightening all around the world
It seems like we cannot get through a week at the moment without some fresh news suggesting inflation around the world will be more problematic than thought, and that interest rates will need to rise earlier and potentially higher than previously believed.
Monetary policy tightening already in place
Over nearly 3 years the OCR increased from 5.0% to 7.25%. But the 3-year fixed mortgage rate barely increased. Contrast that with the current situation of this rate rising 1.8% the past six months while the Reserve Bank’s cash rate has gone up only 0.5%.
Interest rates on an upward march
The long-awaited monetary policy tightening cycle has now kicked off in New Zealand as the need for record low interest rates to combat feared effects of Covid-19 has disappeared, and the need to fight rising inflation has soared.
Monetary policy tightening soon
Things have changed a bit since my last column discussing interest rates a couple of weeks ago. The state of the pandemic has stalled the growth projections for many economies and how quickly interest rates will go up. But what's in store for New Zealand?
