Interest rate hikes: a needed dose of bitter medicine

(Image: Getty)

Thu, 14 Apr 2022

The Reserve Bank of New Zealand’s call to jack up interest rates by 0.5% will cause households pain – but not doing it would have caused even more. It’s a case of taking a big dose of bitter medicine now, to avoid a hospital trip later. With the cost of living soaring, the housing market peaking, and employment running high, the Reserve Bank of NZ (RBNZ) chose to wield the blunt instrument of interest rates decisively. Mortgage rates soarThose with a mortgage will squeal, especially if they bought recently.Pity...

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