RBNZ's Financial Stability Report: Nominal income increases aiding households transition to higher rates
The Reserve Bank of New Zealand's (RBNZ) latest Financial Stability Report (FSR) highlighted rising incomes aiding households to weather the current environment of higher interest rates, but admitted that many households are still reducing spending and extending payment periods in order to make ends meet.
The RBNZ also noted that New Zealand's domestic dairy industry is leaning on recent increases in dairy prices for survival, as well as a rise in non-performing business loans.
Eslewhere in the FSR, the RBNZ cautioned that there is a risk of long-term restrictive global interest rates due to persistent inflation.
About the RBNZ's Financial Stability Report
The Financial Stability Report, released by Reserve Bank of New Zealand, is published six-monthly. In the Financial Stability Report we assess and report on the soundness and efficiency of the New Zealand financial system.