👉After New Zealand's central bank aggressively increased interest rates to a 14-year high, the country's economy entered a recession. Official data indicate that during the first three months of the year, its GDP decreased by 0.1 percent. The economy is in a "technical recession" as a result of that, which came after a contraction of 0.7% in the preceding quarter. Since October 2021, the Reserve Bank of New Zealand (RBNZ) has significantly increased borrowing costs. One of the first nations to begin raising interest rates following the pandemic, New Zealand has moved ahead of the US Federal Reserve. The RBNZ raised its main interest rate to 5.5% last month. In New Zealand, where prices were already rising, higher interest rates are now having an effect on mortgage repayments and other loan costs. David Jordan, a web engineer with a home in Auckland, told the BBC that interest rates are "catastrophic." He continued, "I have seen many job losses in my industry as start-ups attempt to save money, but consultancies working with big global firms appear to be doing better." In an effort to contain price increases triggered by economies opening up following the Covid lockdowns, central banks around the world increased the cost of borrowing. The war in Ukraine also contributed to an increase in inflation because of the rising cost of everything from fuel to food.✅ . . #NewZealandEconomy #InterestRateHike #Recession #GDPDecline #CentralBankPolicy #Inflation #MortgageRepayments #mnm #malayalisnearmeapp #canadaupdate #canadanews
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