Interest rate expectations are weighing on business confidence.
New Zealand’s economic recovery may be hitting pause, Milford wealth management advisor Bruce O’Leary has warned. Speaking to Herald NOW Business, he says rising interest rate expectations are weighing on business and consumer confidence after a promising start to the year. On the outlook for Kiwi investors, O’Leary noted that while the US market has returned to record highs – driven largely by strong earnings in the AI sector – markets in New Zealand, Australia and Europe are sitting 5-7 percent below their peaks. With an election just months away, O’Leary says policy uncertainty is likely to weigh on investment decisions in the near term. He also flagged a growing shift in sentiment around residential property, with many investors questioning whether bricks and mortar still stacks up against a diversified portfolio.
