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Financial Stability Report November 2023

New Zealand financial system remains sound in the higher interest rate environment.

Reserve Bank of New Zealand

Financial Stability Report November 2023
Financial Stability Report November 2023

New Zealand financial system remains sound in the higher interest rate environment.

Christian Hawkesby: Kia ora koutou katoa.

This week we released our latest Financial Stability report. We found that New Zealand's financial system remains strong as it adjusts to a higher interest rate environment.

The full impact of previous interest rate increases globally is still to be seen.

Here in Aotearoa New Zealand, households continue to face higher mortgage repayments.

So far, the vast majority of borrowers have been able to manage these increases, but we know that people are struggling and there has been an increase in those falling behind.

Businesses continue to service their debt, although the dairy and commercial property sectors are facing challenges particularly due to high debt servicing costs and some other factors.

Overall, our assessment is that New Zealand's financial system is strong and well-placed to handle both current adjustment and more severe economic scenarios.

Importantly, this means that our financial institutions are well positioned to take a long term perspective and support their customers through the current and potential future challenges.

Ngā mihi ki a koutou.

Financial Stability Report documents

Media release and media conference

Read our special interest articles

Financial Stability Report snapshots

Interest rates icon

The global economy is continuing to adjust to the higher interest rate environment, however, risks remain.

Debt servicing icon wallet and money

New Zealand households and businesses continue to face higher debt servicing costs, with pockets of stress likely to grow.

House icon

The New Zealand housing market has stabilised following a decline in prices, supported by strong net migration.

Financial system cogs icon

New Zealand’s financial system continues to display resilience despite the recent headwinds.