A net 15% of survey respondents plan to cut consumption spending over the next 3 to 6 months. To add insult to injury, most Kiwi borrowers are on fixed rate mortgages of two years or less. Accordingly, most households that originated mortgages at rock-bottom pandemic rates are yet to be impacted by the RBNZ’s aggressive monetary tightening. Thousands of Kiwi borrowers will soon be required to reset to materially higher (perhaps double) mortgage rates, which will slash their disposable income and crimp their spending. That is when the full impact of the RBNZ’s aggressive monetary tightening will hit Kiwi households and the economy.

Source: Stuff October 11, 2022 12:24 UTC