Trends in post-tax real interest rates

Release date
Vol. 51. No. 4. December 1988
Andrew Bascand
Main file
During the course of New Zealand’s disinflation process there have been frequent claims (from borrowers) that nominal interest rates have been excessive. On the basis of post-tax real rates, however, it is apparent that returns have been negative over much of the period since 1984, and that it is only since nominal rates have declined that post-tax real rates for both borrowers and lenders have turned positive.