Lessons, As Kiwis See Inflation Up, But Home Prices Down!

More evidence today that New Zealand is on a different economic path to Australia. Today we got the CPI inflation data which showed that New Zealand inflation lifted further in Q2 to 2.7%. This mean that inflation is already at the peak the Reserve Bank had forecast in its May monetary policy statement. This confirms the Reserve Bank’s decision to hold the official cash rate earlier this month was justified, despite the weakening economic conditions and falling home prices, as well. Yet, New Zealand has experienced one of the world’s biggest housing crashes, which has significantly improved the nation’s housing […]