- RBNZ: Not currently seeing widespread financial distress among households or businesses
Market news
RBNZ: Not currently seeing widespread financial distress among households or businesses
“Not currently seeing widespread financial distress amongst households or businesses, which reflects the strength in the economy,” said the Reserve Bank of New Zealand (RBNZ) in its Financial Stability Report (FSR) released early Tuesday per Reuters.
Additional statements
More borrowers may fall behind on their payments this year, given the ongoing repricing of mortgages and weakening in the labor market.
Household balance sheets remain resilient in the aggregate, with most households with a mortgage still having substantial equity buffers.
Market implication
With these statements, New Zealand’s central bank repeated the previous day’s announcements and hence the RBNZ failed to impress NZD/USD traders, grinding lower around 0.6170 by the press time.
Also read: NZD/USD pressured in a firmer US Dollar environment
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