PHOTO:ROSS GIBLIN/STUFF If you weren’t already in the door, it could be harder to get there economists say.
ANALYSIS: New Zealand’s monetary response to the Covid-19 pandemic may create increasing inequality, leaving the wealthy better off and those who were already struggling even further behind.
While many headlines in the first half of this year have pointed to impending economic doom, there are now signs that the downturn may not be as bad as some feared – and some people in particular will actually benefit.
While house prices are still expected to drop over the rest of the year, and unemployment to increase, quantitative easing by the Reserve Bank (you might know it as money printing) is pushing large amounts of money into markets.
Quantitative easing drives down interest rates, and the combination of the extra cash floating around and the lower rates is expected to push up the price of things such as houses and shares.
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