It is going to be a dreary winter of recession
Date: 15 May 2023
All the economic pundits agree there is going to be a recession this winter. Unemployment will rise. The cost of living will soar especially for mortgage holders.
“There’s data showing that around 50 per cent of mortgage holders will have to refix in the next 12 months. So to use a hypothetical example, if you bought a house in Wellington in November 2020, you probably fixed at around 2.6 per cent for three years, meaning that you paid roughly $1171 per fortnight. When you re-fix in November, you’re going to be fixing at 6.3 per cent and paying $1793. So that’s an extra $622 per fortnight.”
The Reserve Bank’s Financial Stability Report - Click Here
Most of the fault for this can be laid at the feet of the government. They decided to inflate civil servant numbers and run a monetary policy of voluminous printing of money. This drove property prices through the roof. It fuelled inflation which can only be combatted by raising interest rates.
