Winners and losers from falling interest rates

RBNZ economist Gulnara Nolan looked at who benefitted from lower rates. (Photo: RBNZ)

Tue, 27 Jul 2021

Lower income earners, including half of those aged over 65, were worse off as interest rates fell between 2016 and 2020, according to a paper by Reserve Bank economist Gulnara Nolan.But those with mortgages on average experienced a 1% increase in income while those without experienced a 0.4% decline.Younger people in their prime earning years, those aged between 25 and 54, gained 0.3% in income on average while those aged 55 to 64 lost 0.1% and those 65 and over lost 0.5%.Sparked by the increasing attention internationally on rising wealth conc...

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