WELLINGTON - Government, business and individuals can anticipate more bad news for the economy ahead in the form of higher interest rates if a survey of leading economists proves correct.
The New Zealand Press Association surveyed all leading bank economists, independent forecasters, the Council of Trade Unions and Manufacturers' Federation.The one thing the 13 respondents universally agreed on was that they expected interest rates to be increased in the next six months by between half and one percentage point, though the survey was completed before new weekend United States data pointed to a slowdown in America, which may relieve pressure in New Zealand. By a seven-to-five majority, they think that is the right course for the economy.
Floating mortgage rates have risen from around 6.75 per cent in November to 8.8 per cent after a series of five increases in the official cash rate by the Reserve Bank over that time. By a majority of nine to four, they believe the bank did the right thing on May 17 by raising the rate for the fifth time in six months.
-NZPA
Rates will rise again - survey
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