Global markets fall sharply and Australian stocks are poised to follow, while expectations remain that the US Federal Reserve may not be finished hiking interest rates. Follow the day's events and insights from our business reporters on the ABC News live markets blog.
By Stephanie Chalmers
If you're feeling the squeeze of Australian interest rates, with a 4.1 per cent cash rate, spare a thought for borrowers across the ditch, where theits latest policy decision at 12pm AESTEconomists at the Commonwealth Bank's NZ arm ASB expect the cash rate, when it is tipping cuts to begin.notes, "there is still plenty of monetary tightening to filter through to the NZ economy".
"The effective interest rate on outstanding mortgages has risen, but at just over 5 per cent, it is still below the RBNZ’s official cash rate."That's what you can see on the red line above — it's still below the official cash rate.So as people roll off the rates indicated by the red line, they'll be facing a jump up to the yellow or green lines on the chart.
"As more fixed rate loans expire and roll on to much higher fixed or variable interest rates household spending is likely to slow and reduce the pressure on inflation," Ms Clifton says. So while the RBNZ might not raise any further, NZ borrowers are unlikely to feel rates relief for some time.By Stephanie Chalmers
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