19/08/2021
In this COVID world a lot can change within a day, like it did earlier this week. But while we all focused on the snap lockdown, there was one knock on effect that impacts New Zealand investors and borrowers.
For most, the Reserve Bank’s decision to hold the official cash rate came as a surprise. After years of bank interest rates at generational lows, they have been starting to rise a little. But even before the decision to hold the official cash rate this week, bank economists were admitting that these small increases will not keep up with inflation in the next year. It means the value of savers’ money will likely erode in real terms.
But, with continued low interest rates, are there also some opportunities for savvy investors?
In this COVID world a lot can change within a day. Even then, the Reserve Bank’s decision to hold the official cash rate came as a surprise.