Getting real about the coming recession

Getting real about the coming recession
As home values sink and mortgage costs rise, an economy based on housing wealth faces recession. (Image: Getty)
Pattrick Smellie
For some unknown reason, one of the scariest sentences in last week’s financial stability report from the Reserve Bank of New Zealand seemed to attract very little attention.In a box to the side of the official commentary, the central bank observed that if residential mortgage rates were to reach a prevailing rate of 7%, “46% of 2021’s mortgage borrowers would need to spend at least half of their after-tax income on interest payments”.In other words, nearly half the people who borrowed for houses at the top of the market...

More Economy

RBNZ upbeat about interest in governor role
Economy

RBNZ upbeat about interest in governor role

Expressions of interest to follow on from Adrian Orr closed on Friday

Rebecca Howard 13 Jun 2025
Finance Minister says RBNZ could have 'pulled its socks up'
Economy

Finance Minister says RBNZ could have 'pulled its socks up'

Willis says RBNZ did not manage an OIA request about Adrian Orr well.

Rebecca Howard 12 Jun 2025
Orr resigned over funding disagreement
Economy

Orr resigned over funding disagreement

Board had conceded a lesser amount of funding was fine. 

Staff reporters 11 Jun 2025
NZ dollar targeting 61 US cents in short term
Economy

NZ dollar targeting 61 US cents in short term

The kiwi was trading at 60.20 US cents early Monday.

Rebecca Howard 09 Jun 2025