Business and households facing interest rate stress, but the banks are OK

Adrian Orr has acknowledged businesses and households will feel some pain. (Image: NZME)

Thu, 27 Oct 2022

Reserve Bank governor Adrian Orr acknowledged businesses and households will feel some pain as the central bank works to actively slow domestic spending by raising interest rates, but said the banks are fine. “There will be stresses in business and amongst households as interest rates and asset prices adjust,” he said in a speech to the Institute of Financial Professionals New Zealand.The RBNZ has lifted the official cash rate from 0.25% to 3.5% in the past 12 months and is showing no signs of slowing down. The impa...

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