Economic Commentary
18 April 2024
The first quarter of the year has been solid, with portfolios continuing to rise and adding to the gains from the last couple of months of 2023.
This has been despite the latest data suggesting that inflation is going to be a stubborn enemy to defeat. Wholesale interest rates have risen since January, which has intensified over the last couple of weeks. It is now increasingly likely that interest rates will remain at current levels for a longer period of time. This is going to prove challenging for many in the short-term, particularly in NZ as the economy appears to be slowing rapidly. From an investment perspective, the overall trend of a declining interest rate environment over the next 12-18 months is still intact, albeit with less certainty around the timing of rate reductions.
