Monday, July 16, 2007
Watch NZ housing tank over the next 12 months!
Higher-than-forecast inflation and expectations of interest rate rises have sent New Zealand's currency to its highest against the dollar since 1985. Consumer inflation rose by 1% in the three months from April, which helped push the kiwi to $0.7900 to the dollar. The latest inflation data was above central bank forecasts, and double that seen in the previous quarter. New Zealand interest rates currently stand at 8%, which is the highest in the industrialised world. NZ house prices are more absurd than here. A country the size of the UK with less than a tenth of the population and very lax planning laws. This WILL end in tears!