Why the markets hate inflation

Companies face a steep climb to reach profitability. (Image: Unsplash)

Sat, 19 Nov 2022

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...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Stay informed on business, government and financial developments across New Zealand.
Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Policy

Health and safety change for directors

Govt to clarify managers are responsible for managing day-to-day health and safety risks.

Dileepa Fonseka 5:00am

Finance

Credit card issuers fear ComCom proposals

The proposed regulations will stifle banking competition, says Mastercard.

Pattrick Smellie 5:00am

Credit card issuers fear ComCom proposals

Public sector Business of Government

Reforms, reminiscing and just a few regrets

Public Sector Act and procurement in the firing line.

Ian Llewellyn 5:00am

Reforms, reminiscing and just a few regrets

Sponsored

Commercial property trends: AI, sustainability and growing confidence

Falling rates and green tech shape property investment’s future.

PMG

Sponsored

Continuing Arnold Downer’s legacy: infrastructure, inclusion and impact

‘The Downer difference’ in action: building communities, creating lasting change.

Sponsored by Downer

More Economy

Finance

Andrew Body: Willis can do more to fix banking competition

A competitive banking system needs more than lower capital adequacy ratios.

Andrew Body 5:00am

Finance

Credit card issuers fear ComCom proposals

The proposed regulations will stifle banking competition, says Mastercard.

Pattrick Smellie 5:00am

Primary Sector

Mineral sands miner appoints new chair for expansion era

Debbie Birch joins the group as it seeks consent for a major new mine near Hokitika.

Oliver Lewis 01 Apr 2025

Economy

Signs of optimism as number of NZers behind on payments falls

New credit data from Centrix shows green shoots of optimism as mortgage and consumer arrears fell in February.The number of New Zealanders behind on their payments fell by 11,000 in February compared with January.While there are still 480,000 consumers in arrears, levels are 1% l...

Staff reporters 01 Apr 2025

Why the markets hate inflation

More Economy

Your company has a subscription

Team