With interest rates rising, the RBNZ has stopped buying government bonds and has lifted the Official Cash Rate. This is impacting interest rates in the economy, along with investments and the implications of this are straightforward: higher mortgage rates are a headwind for borrowers and good news for savers in term deposits. What’s harder to understand is what rising interest rates mean for bond markets and investors with bonds in their portfolios.
In the latest episode of the ASB Investment Podcast, ASB Senior Economist & podcast host Chris Tennent-Brown is joined by fellow Senior Economist Mike Jones, along with ASB’s Head of Asset Management, John Smith to discuss rising interest rates, its effect on the bond markets and what the future may hold for investors.