Sharon Zollner is a macroeconomist with central bank, international, and private sector experience and she’s the chief economist at ANZ bank – the last time she was on the show we talked about zombies, but this time, it’s totally different – where to from here? If you want a deeper understanding of where interest rates may be heading and why, this will be a good listen.

The last time Sharon was on the podcast was Ep 121 – It was about Zombies, and you should check it out after this one.

Many of us haven’t gone through a period of decent, sustained inflation – in my first decade of life existed a time where inflation hovered around 15% each year in New Zealand. Prices would double every 5 years at this rate ref: https://www.macrotrends.net/countries/NZL/new-zealand/inflation-rate-cpi.

Since the early ‘90’s we’ve enjoyed steadily declining rates of inflation, and interest rates. Our parents are quick to remind us of how much interest rates used to be (on a mortgage roughly 10% of the size of yours perhaps) – are we really heading to a world like what they knew during this time, but carrying a far larger burden of debt with us? Are we seeing a transitory blip in a long term trend, a reversal, or the conclusion of some sort of super-cycle that’s going to fundamentally shift things in a way we’ve never seen before?

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