RBNZ highlights challenges ahead for households, firms re higher interest rates

Reserve Bank of New Zealand:

• Some households and firms will be challenged by the rising
  interest rate environment
• Increasing household debt loads will slow down growth of consumption.
• There are increased
  downside risks to the global economic outlook
• RBNZ expects new residential construction will slow
• The extent to which economic activity will slow in response to rising rates is uncertain

more to come