The ongoing pain of increases in living costs and rising interest rates are being felt here in New Zealand and by citizens globally. Ironically, the rising interest rates will bring inflation back under control – but it’s fair to say that this short-term pain for long-term gain is biting.
This month in Tea with Tony, we examine this alongside the good news – improving optimism in New Zealand business confidence, albeit with significant challenges to boot, particularly for the retail sector. Plus, we talk about the falling Kiwi dollar and of course, the housing market.
Tune in for Tony’s perspective.
*Please note – Tony Alexander is an independent economist. His views are his own and not necessarily shared by NZHL or vice versa. Tea with Tony is brought to you by NZHL in a sponsored capacity.
Key Moments
1:43 – Business confidence – what does it mean for everyday Kiwis?
5:16 – The unique environment for interest rates
6:26 – The likelihood of a global recession
07:49 – Consumer spending and the implications for interest rates
9:33 – Salary increases
10:43 – Understanding the Official Cash Rate
13:51 – Interest rate affordability
15:15 – The Kiwi dollar
17:23 – The housing market
