New Zealand’s benchmark share index is down 17.5% so far this year, and the second half is expected to remain “challenging” as the impact of high inflation and rising interest rates filter through the economy. READ MORE:* Sharemarket rebounds, starting February on a positive note after a 'rough' January* Sharemarket drops 1.1% as higher inflation seen pushing up interest rates* Sharemarket drops as investors fret over outlook for higher interest ratesLister noted the declines followed sharp gains in asset values over the past two years on the back of ultra low interest rates and money-printing programmes. “Every asset class in the world went up dramatically, and now we’re just really giving back some of that as interest rates go back up again,” he said. The Reserve Bank started raising interest rates from a record low 0.25% in October last year. “I’m actually not feeling too downbeat on the local market,” Lister said.
Source: Stuff July 03, 2022 21:42 UTC