Independent economist Tony Alexander’s monthly Spending Plans Survey is out, which shows that New Zealand households are still planning to cut back on spending amid soaring interest rates and inflation. A net 11% of the 1,672 survey respondents plan to cut consumption spending over the next 3 to 6 months. Unlike Australia where floating rate mortgages dominate, most Kiwi borrowers are on fixed rate mortgages of two years or less. As such, most Kiwis that originated mortgages at rock-bottom pandemic rates have yet to impacted by the Reserve Bank’s aggressive monetary tightening. That is when the impact of the Reserve Bank’s tightening will truly be felt.

Source: Stuff September 12, 2022 06:00 UTC