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Kiwi’s Get Crushed Some More…

As expected, the Reserve Bank In New Zealand lifted the official cash rate by another 0.5% to hit 2.5%

They said The Monetary Policy Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and support maximum sustainable employment. The Committee is resolute in its commitment to ensure consumer price inflation returns to within the 1 to 3 percent target range.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

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  1. Inflation allways settles after price rises have already damaged the purchasing power and savings of ordinary people & never goes down…..it is this exhausting process that stops inflation

  2. People who argue that central banks and specifically the RBA will weaken in their resolve to tackle inflation in the face of growing job losses and house price declines fail to recognise that inflation control is priority number one, two and three for central banks. Folks need to understand that Paul Volcker is viewed as a god in central banking circles….a hawk amongst hawks, for crushing inflation by causing a recession. People calling for the RBA to stop raising rates because it ‘will crash the housing market’ don’t understand the order of priorities at play.

  3. Experimental pretend economy has failed badly like it has in Australia, "four large" private "(ANZ, ASB, BNZ and Westpac) responsible for 85% of bank lending",(in NZ).Bigger forced changes are coming both countries.

  4. I think the RBA and RBNZ perhaps, are aware that housing costs are curtailing labour mobility, and pretty much rules out immigrants coming in to fill the gaps.
    We have little choice here. We have to make housing cheaper.

  5. You seem to not understand the meaning of 'invasion'…..the British invaded Australia, the British invaded the Americas, the British invaded New Zealand, the British invaded Hong Kong, the Catholic Jesuits invaded the whole of Latin America and thus are all Catholics today…………so called 'ukraine' is Russian land, 'ukraine' which means outskirts in any Slavic language 'U Krai' never existed pre 1919 when Communist occupiers cut that land out of Russia…Russia is cleaning up its own yard from the West which is trying to steal their land. You gronk.

  6. Feel for people that have a mortgage but it's our fault for allowing New Zealand to become a dept based economy in the first place, making mortgages legal means that everyone needs a mortgage and that drives the price up and makes our economy less stable

  7. The first order of business for Jacinda Ardern on her recent US visit was to go to Blackrock HQ to meet with Larry Fink. She’s also a WEF young global leader. While she (he?) is still in charge, NZ’s screwed.

  8. At a 2.5% OCR is remember basically only bringing it back to normal. Some think this is a short blip up . It isnt up yet . For the entire existence of the NZ OCR from 1999 to now has only been under 2.5% from 2016 to today with 2.5 years of that a pandemic, and I would imagine central banks are realising low interest rates aren’t a good idea therefore will reluctantly go SUPER low in the future. The nz central bank dropping its OCR from 2.5% in 2016 to 1% in 2019 will probably go down in history as its must stupidest idea next to dropping its LVR in march 2020

  9. NZ taxpayers hit for six again!
    With the national deficit soaring to 6.5 million pounds, the government is to increase income tax and import duties. To make matters worse, the increases are to be backdated for 12 months.
    Oh wait… that was the 5th August 1931.

  10. If a housing crash is considered to be down 20% from peck Wellington I think just hit it . Wellington has dropped more than double in 6 months than the first year of the GFC housing crash of Ireland, and Ireland carried on down for years later. The hpi came out today and it doesn’t look good anywhere in nz. Of course stuff news and the nzhearld prefer to site y/y data which is totally stupid in a downturn. The peck was November. July to June is basically flat so December to june has basically retracted by a year. Y/y December to this coming November is going to be shocking. The turning point in data y/y is basically now because the peck is half of that year. From here each month of Y/y data drops

  11. Whats an invasion? The British invading Australia, Americas, New Zealand, Hong Kong…taking land that isnt theirs….Russia is cleaning up its own yard and land which has always been theirs. The Vatican is trying to expand the EU by stealing land in the East which is Orthodox Christian

  12. Covid & Russia have been used to bring this global financial catastrophe in. All engineered. NZ will be a strict socialist nation soon unless they start standing up for themselves!!

  13. I’ve read about 5 articles lately saying it’s harder to get tenants, propertys empty, prices coming down. One was Rotorua and another was Tauranga. Wellington we all no rentals propertys are hurting. Kiwis are leaving nz and people don’t want to come to nz because all conditions are terrible. China which was a major player for students, working visas etc is shocking at the moment . Not because the nz government isn’t doing enough which some would like you to believe, China just isn’t in a good place at the moment and many other countries are the same. So having a brain drain right now isn’t good. And as for rental property nz has been building more than ever and many would be waiting for there keys for there new property and handling there notice in to there landlord. Which will be very hard to be replaced. Many landlords moved the tenants out to try selling but couldn’t and are now looking again for for tenants

  14. Is it ever possible to get price (of money) fixing correct?
    I really wish they would just stop trying to help us and let some kind of market take over.
    EndTheFed

  15. Quantitative population growth, quantitative credit expansion and speculative mania…

    Those who cheered it on deserve the obvious outcomes of their own ideological poison.

    All the Westminster clownshows exhibit the same circus and Marching band characteristics.

  16. After the GFC 2008 the RBNZ stopped dropping at 2.5% and roughly stayed there for 7 years. The central bank has only just got out of emergency mode . Expecting it to go back under 2.5% would only happen in dire conditions. Taking the OCR only back to these settings is enough to crash housing market because of where housing went too

  17. In 2017 I went on a holiday to Gold Coast:
    Accomodation $185 per night.
    Car rental $34 per day.

    For Dec 2022 same room at same hotel 5 years later on same dates:
    Accomodation $363 per night (almost 2x increase 15% pa compunded)
    Car rental $172 per night (5 x more expensive 38% pa per year compounded)

    Yet I am being told inflation is 5.1%.

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