11.14.2018

New Zealand`s interest rate and increased USA interest rate

There is a origin article - https://ideaofbrad.blogspot.com/2018/11/blog-post_12.html
The origin article is Korean so i translated and make summary of them.


As you can see from the source news here, interest rates are expected to be frozen from 2019 to 2020. The employment rate is fine, and consumer price inflation is calculated below the mid-2 percent that the government wanted, and it is frozen as a reason to raise inflation. Though not mentioned in this article, the government's desired GDP growth rate is 3 percent, this time a little more than 3 percent, but there is still a risk of a growth rate declining later on.

And the government announces that the New Zealand dollar should be a little cheaper. The reason is that New Zealand's exports are due to the fact that the New Zealand dollar is a little cheaper, which creates export competitiveness, which in turn increases the size of New Zealand's economy. And as you can see, interest rate hikes of the United States, but New Zealand still has a strong economic growth in the country due to GDP growth, strong exports, i do not think it is the same.


Therefore, New Zealand interest rates will not go down for a while, and in fact, even i The government raise interest rates in New Zealand, the banks are often tied up with money, so there is no reason to raise interest rates. However, real estate price have not resolved and many real estate policies are still in place, but they are not so effcetive.

As you can see, putting money in a bank in not so profitable unless the interest rate is low and it is not a huge capital, so i do not think the real estate not earn money with interest rates, the way to make money by investing is usually real estate and stocks are not popular.

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