Prediction interest rates will remain higher longer
The economic forecaster says consumer spending will continue to be squeezed throughout this year and into next year as households roll off lower fixed mortgage rates and their debt-servicing costs rise.
According to Statistics NZ, 38% of Kiwis have a home loan and RBNZ data show about 90% of mortgage debt is on fixed rates.
Infometrics’ predicts the downward path for interest rates from mid-next year will be much slower than the rate of increases has been.
Chief forecaster Gareth Kiernan says there is little evidence that inflationary pressures have started to moderate, despite New Zealand’s economy probably being in a recession that started in the final quarter of 2022.
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