Why the markets hate inflation

Why the markets hate inflation
Companies face a steep climb to reach profitability. (Image: Unsplash)
Warren Couillault
I remember opening the mail with my mother at the letterbox one day in the late 1970s or early 1980s. She was shocked to get a letter from the bank saying our mortgage interest rate had increased to … wait for it …18%. Inflation averaged 11.5% pa in the 1970s, peaking at 18% in 1980, as the world adjusted to the Organisation of the Petroleum Exporting Countries (Opec) oil shocks: interest rates had to follow.It took around 30 years to tame inflation, using a solid combination of financial caution and strict monetary policy, s...

More Economy

Consumer confidence back on the up – ANZ survey
Economy Free

Consumer confidence back on the up – ANZ survey

Consumer confidence rose five points to 98.3 in April, according to the latest ANZ-Roy Morgan survey, shoring up the upward trend that was starting to look wobbly.But inflation expectations also rose sharply – up 0.5 points to 4.7%, the highest reading since July 2023.“Household...

Staff reporters 24 Apr 2025
‘Uncertainty abounds’: Willis on trade war challenges
Economy

‘Uncertainty abounds’: Willis on trade war challenges

The impacts for NZ are twofold and will make its economic recovery harder, Willis says.

Rebecca Howard 23 Apr 2025
Rise in liquidations compounded by IRD crackdown
Economy

Rise in liquidations compounded by IRD crackdown

The IRD filed two-thirds of creditor applications in the March quarter.

Gregor Thompson 22 Apr 2025