Are New Zealand’s Interest Rates Set to Rise?

Written by
MBS Advisors
Published on
July 7, 2021

New Zealand’s economy is running hot at the moment. This is due to New Zealander’s spending more money at home and still having a strong export sector, especially the dairy industry.

Growth is strong, but the pandemic is still with us and still impacting financial markets. The Government and Reserve Bank of New Zealand have measures they can put in place to ensure interest rates don’t skyrocket. US economists have signalled that as their economy recovers they expect interest rates to rise. However, such rises are not likely to take effect until late 2023.

If you have mortgages and are concerned that New Zealand’s interest rates will rise, you can look to fix at some very good rates for two, three and five-year periods. After the global financial crisis hit in 2008 NZ’s economy took a few years to recover. When the recovery took place interest rates were expected to rise, but this never eventuated. We are still blessed with low interest rates at the moment which is keeping the housing market strong.

When reviewing your mortgages and interest costs, you need to be comfortable with the decision you make based on the current situation. Interest rates will rise in the future, but timing is everything. Contact the MBS team and get advice to help make your decision easier.

Share this post
Blog

Explore our latest articles

Enjoy our latest news and blog posts

5 min read

Business Support Following Lockdown Announcement

The Government has announced that significant support for businesses and workers has been triggered following a rise in alert levels to combat COVID-19 in the community. The Government decided to move to alert level 4 for New Zealand starting at 11.59 pm on Tuesday, 17 August 2021, initially for 3...
5 min read

Key financial numbers to focus on in your business

What are the key reports to focus on in your business? We'll show you how to track performance, take action and prepare your company for surviving the new business normal. As a business owner, it’s never been more important to have a good grasp on your finances. For many businesses,...
5 min read

Government COVID-19 Wage & Leave Subsidies

We understand that there is a lot of ambiguity when it comes to the Government providing significant COVID-19 wage and leave subsidies to employers and self-employed persons. Many of you will have questions about how we treat these for Income Tax, GST, and Payroll purposes. Below is a brief...

Stay updated and sign up to our newsletter

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.