Quite a lot to fit into what's been not quite six months of 2022. As at the end of the March quarter the unemployment rate was only 3.2%. Regardless of whether the inflation rate keeps increasing, the die seems cast for inflation to be much more of an ongoing, structural, presence over future years than it has been for decades. The RBNZ reckons this will see even short-term fixed mortgage rates hitting 6% (the one-year rates are already not far off 5%). My gut feeling is that if the RBNZ squeezed mortgage rates higher than 6% we could be in a world of trouble.

Source: New Zealand Herald June 11, 2022 20:42 UTC