Weekly Digest – 23 August 2022

Weekly Digest – 23 August 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Housing prices over the last 20 years explained

A joint paper authored by the Housing Technical Working Group has found that a global fall in interest rates, our tax system, and restrictions on the supply of land for urban use are the main causes of higher house prices over the last 20 years.

Current economic system standing in the way of reducing waste

A new report shows that our economic system, built upon principles of extracting resources for profit, is simply not built to achieve a circular economy. In fact, it incentivises waste.

The government is taking direct control of Kiwibank

The Crown is buying Kiwi Group Holdings, the company that owns Kiwibank and the soon-to-be-sold Kiwi Wealth. The price has not been disclosed but is estimated to be about $2.1 billion.

Productivity gap costing the economy billions

A new study has revealed that New Zealand has a huge productivity gap, and requires one additional worker for every five currently employed just to catch up to an average rate maintained by other OECD countries. Xero New Zealand manager Bridget Snelling says that embracing automation and cloud technology can help us catch up.

RBNZ says money printing both helped and hindered the economy

The Reserve Bank said last week that its money printing policies helped save the economy when the Covid pandemic hit in 2020. However, the policy also helped to overheat the economy and fuel inflation.

Auckland Airport reports loss, but optimistic about the upcoming year

Auckland Airport has reported another full-year underlying loss due to prolonged border closures. However, reopening the border in April marked a turning point where profits began to rise again.

Reserve Bank raises OCR

The Reserve Bank has raised the official cash rate by 50 basis points, to three per cent. The seven-year high won’t be the last, as more rises are expected until inflation is under control.

Four Candles shutters its doors less than a year after opening

The upscale, independent supermarket on Auckland’s North Shore was meant to be the first of four, but the unpredictability of the market due to the pandemic made it impossible to keep the store open.

Housing market downturn likely to cause large pay cut for real estate agents

A new forecast from Infometrics estimates that real estate agents are likely to see a 20% drop in their take-home pay as house prices continue to fall.

Your KiwiSaver questions answered

Each week, BusinessDesk and the NZ Herald’s Cooking the Books podcast tackle a different money problem. This week, it’s all about KiwiSaver. Listen here.

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