New Zealand: Housing market defying headwinds from higher interest rates
Alicia García Herrero (Natixis) | As the Reserve Bank of New Zealand (RBNZ) hiked aggressively to contain surging inflation, the New Zealand economy fell into a technical recession in 2023. While the recovery in exports has offset the weakness in housing investments, private consumption has softened on the back of households’ higher interest payments. Nevertheless, because inflation was still elevated at +4.0% year-on-year in Q1-24, well above the 1-3% target…
