The latest batch of consumer confidence reports for New Zealand shows that Kiwis remain extremely depressed on the back of soaring inflation and interest rates. New Zealand’s poor consumer confidence is understandable. These shocks have sent inflation soaring, which has prompted the Reserve Bank of New Zealand (RBNZ) to aggressively hike interest rates. With the next New Zealand election due in late 2023, and Kiwis confronting soaring mortgage costs, plunging house prices, and a potential recession, Jacinda Ardern is staring at near certain electoral defeat. Worse, she can’t do much about it, given the RBNZ holds the interest rate lever.
Source: The Guardian July 04, 2022 07:07 UTC