Inflation expectations down to 3-year low!
The Reserve Bank of New Zealand is likely pleased with the decline in one- and two-year ahead inflation expectations, especially the two-year measure near the midpoint of the 1% to 3% target band.
Articles written by leading NZ economist about Finance
Could remote work trigger a US banking crisis?
In New Zealand, we typically see remote work as an overarching benefit for our regions because of the employment opportunities it offers, but in the US there are growing concerns that remote work could spark a regional banking crisis.
Mortgage stress tests are a joke
Times are tough for some households and I sometimes forget that as I go about my day-to-day. I […]
Credit agencies concerned with NZ’s ballooning deficit
New Zealand's current account deficit expanded to a record 8.9% of GDP in December and could risk a credit rating downgrade for New Zealand. Cool the jets with too much frivolous debt-fueled consumption.
Reserve Bank shouldn’t be too trigger happy despite high inflation
Inflation data to September caught many forecasters with their pants down. The consensus had been that inflation would […]
Mortgage rates fall, but OCR still to rise
You might have been confused to see several banks reduce fixed mortgage rates last week, while at the same time columnists are saying the Reserve Bank will lift the official cash rate by 50 basis points on Wednesday.
Corporate responsibility can play a role in taming inflation
It was a pleasure to record a podcast with Andy Thompson last week. In a wide-ranging discussion we focused on inflation and the potential implications for interest rates within New Zealand.
A cautious approach to interest rate hikes
The Reserve Bank decides on Wednesday what it wants to do to interest rates. This means that economists are beginning to dust their crystal balls, brush off the tarot cards, and meet up to argue over craft beers in back alleys as to what the Bank will do.
Don’t downplay the inflation boogeyman
Inflation has spiked to its highest annual level in over a decade, after recording its biggest quarterly lift in almost 35 years. Of most concern to me is the economic fallout which higher mortgage rates are having on households’ discretionary budgets.
Playing fair with small business
Businesses are playing fairer with each other. Xero’s time to be paid indicator shows that the average small business now waits 23.6 days for an invoice to be paid, down from 26.7 days in June a year ago.
Emergency cut to reassure stability of NZ banking system
The banking space will see further rapid changes this week in response to developments internationally. We are now in full-blown financial, as well as public health and economic crisis mode.
Interview: Trump’s US-Europe travel ban NZ effects
Trump's travel ban on Europeans entering the US caught airlines, policymakers and travellers off guard. Coronavirus now poses a crisis-trifecta: Public health, economic and a financial crisis.