Alan Bollard, Reserve Bank Governor of New Zealand, provides advice to citizens well in advance.
“New Zealanders be warned. Interest rates are going up and there are no signposts indicating any relief in the medium or near term.”
In December Dr Bollard warned Kiwi battlers not to keep ramping up their housing prices. They paid no apparent heed.
In March Dr Bollard put his boot into the banks telling them that unless they played ball… he might be forced to take other measures.
And so Dr Bollard will make no friends today.
Householders will be angry that their latest pay rise has just magically vanished into the morning breeze.
Exporters will be angry that this decision will put even more pressure on the high exchange rate.
And politicians will be angry that everybody else is angry.
“It does not take rocket science to figure out that this is going to hurt.” [link]