Markets, Mystics & Mayhem podcast: Ep19

Published on 18 February 2025

This week we’re diving into the power of inflation expectations. History has proven expectations of inflation are self-reinforcing. Expect low inflation and low inflation you shall receive. Expect high inflation and high inflation it is. The great news is that here at home, inflation expectations are freshly anchored at the RBNZ’s 2% sweet spot. We discuss the importance of the move, and how it should give the RBNZ confidence to deliver more.

Jarrod_Kerr_Profile-500x500-v2

Jarrod Kerr

Chief Economist
KB_MaryJo_Profile_500x500

Mary Jo Vergara

Senior Economist
KB_SabrinaDelgado_Profile_500x500

Sabrina Delgado

Economist

Expectations become reality. That’s the magic of inflation targeting

mmm ep19
Listen on Spotify Watch on YouTube

TAGS

All content is general commentary, research and information only and isn’t financial or investment advice. This information doesn’t take into account your objectives, financial situation or needs, and its contents shouldn’t be relied on or used as a basis for entering into any products described in it. The views expressed are those of the authors and are based on information reasonably believed but not warranted to be or remain correct. Any views or information, while given in good faith, aren’t necessarily the views of Kiwibank Limited and are given with an express disclaimer of responsibility. Except where contrary to law, Kiwibank and its related entities aren’t liable for the information and no right of action shall arise or can be taken against any of the authors, Kiwibank Limited or its employees either directly or indirectly as a result of any views expressed from this information.

You may also be interested in

Markets, Mystics & Mayhem podcast: Ep20

The RBNZ cut the cash rate to 3.75%, and signalled more cuts to come. With inflation now stabilising, the economy needs relief. In this episode, we run through the RBNZ’s latest policy statement and fresh forecasts. The Kiwi economy is set to recover this year, but there remain key uncertainties. There are signs of improvement in more timely activity indicators, but the balance of risks to the outlook are skewed to the downside. We discuss what this means for financial markets.

Markets, Mystics & Mayhem podcast: Ep18

Unemployment is higher, employment growth remains in contraction, workers are being forced to the exits, and even total hours worked are in decline. The labour market continues to soften. We're delving into the details, including the demographic and industry breakdown.

Markets, Mystics & Mayhem podcast: Ep17

This week we take a look at the mortgage book across Aotearoa. In anticipation of further rate cuts from the RBNZ the book has shortened up with 81% of borrowers fixing for one year or less. It’s a gamble that’s paying off. Naturally, the question now turns to when borrowers should fix for longer.

Markets, Mystics & Mayhem podcast: Ep16

We're back from break and feeling good about 2025. In this episode, we cover our expectations for the Kiwi economy this year - a year of two halves.

‘Show me the money’: What Kiwi are buying this summer

Mary Jo Vergara joins Bernard Hickey on the latest episode of ‘When the Facts Change’ to discuss the latest spending data collected over the summer break. They go through the retail spending figures from shops, cafes, restaurants, hotels and holiday hotspots over December and January.

See all