Reserve Bank shoves Kiwi consumers toward recession

The only area where Kiwi households expect to spend significantly more is groceries, which reflects soaring inflation:By contrast, discretionary spending on things like eating out, technology and furniture has been decimated. To add further insult to injury, the majority of Kiwi borrowers are on fixed rate mortgages of two years or less. This situation will change next year when these fixed rate mortgage terms begin expiring en masse. Thousands of Kiwi borrowers will soon be reset at significantly higher (perhaps double) mortgage rates, which will slash their disposable income and supress their spending. This is when the full impact of the RBNZ’s monetary tightening will fully hit Kiwi households and the economy, with a consumer-led recession a distinct possibility.