Every now and then I will have clients say to me “The interest rates are going up, and next year will be 7%”. I smile and reply, “So you’re the fortune teller?”
In my opinion, the interest rate is like the petrol price, if there are unforeseen events, it fluctuates. Historically, the interest rates go down. Overall, New Zealand is relying on export business, we are exporting timbers, meats, education and tourism. I can guarantee neither government nor people want to see the rates increase.
So here is my:
The interest rates will go down but it may go up temporarily in the meanwhile. It sounds like a politician but it’s true.