Insights

Spring Economic update 2023

After a solid first half of the year, financial markets gave up some of their gains in the third quarter as attention stayed focused on inflation and interest rate expectations as well as the future growth outlook. While there are growing signs that the interest rate rising cycle may now be over in many countries, uncertainty remains about how quickly interest rates may decline again in the months and years ahead.

In the market commentary, we touch on some areas of importance to the New Zealand economy – key commodity prices, the residential housing market and interest rates. In the key market movements section, we explore in more detail some of the main drivers of the recent quarterly returns.

The feature article looks at the current hype surrounding businesses adopting an artificial intelligence focus, and some broadly comparable periods in history to remind ourselves of lessons already learned.

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