New Zealand Central Bank Hikes Rates by Record, Sees Recession in Mid-2023

The video discusses New Zealand's significant rate hikes, the largest since 1999, aimed at combating high inflation and low unemployment. Despite global trends of easing, New Zealand is aggressively tightening monetary policy, potentially leading to a recession in 2023. The impact on households, especially those with floating rate mortgages, is highlighted. The video also compares New Zealand's approach with other countries like Sweden and the US, noting the risks of diverging from global trends.

What was the main reason for New Zealand's recent jumbo interest rate hike?

• To boost economic growth

• To combat high inflation

• To increase employment

• To stabilize the Kiwi dollar

What is the expected peak cash rate in New Zealand for 2023?

• 4.25%

• 6.0%

• 4.75%

• 5.5%

What economic condition is New Zealand expected to enter in mid-2023?

• Recession

• Stagnation

• Economic boom

• Hyperinflation

Why is the RBNZ front-loading interest rate hikes?

• To boost the housing market

• To align with the Federal Reserve

• To increase consumer spending

• To reduce inflation quickly

What risk does New Zealand face by diverging from the Federal Reserve's approach?

• Housing market collapse

• Currency devaluation

• Increased inflation

• Economic isolation