Interest rates have been in a bear market for over 30-years, I know the same millennials mentioned earlier couldn’t comprehend mortgage rates up near 20%! We all know interest rates are going higher, NZ is now expected to hike 7 times before the RBA shifts into gear which must be a scary proposition to leveraged people across the Tasman.
We are not calling interest rates to surge to double digit levels but a return for the RBA Cash Rate up towards 5% shouldn’t be ruled out, its spent much of the last 20-years in this region. Importantly a move of this magnitude is extremely likely to change the investment landscape impacting a number of stocks / sectors in very different ways.
MM remain bullish interest rates
