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Central banks the world over have a bit of a bad habit of reactionary decision making. After overstimulating the economy big time when the pandemic hit by dropping rates to record lows, they were much too slow to jack rates up again when inflation started running rampant. And it's created such a big mess that Squirrel guest blogger, Rodney Dickens, reckons we're in for an extended battle to get us out of it again.

It came as no surprise to anyone in the world of economics and financial markets this week when the Reserve Bank left its official cash rate unchanged at 5.5%.

New Zealand has narrowly escaped the technical recession that was called a few months back — but Kiwi households are still feeling the pressure from high interest rates. So with an Official Cash Rate (OCR) announcement on the cards for 4th October, what’s likely to happen with mortgage rates from here?

Sticking to the path it laid out for us in July, the RBNZ has opted to hold the OCR steady at 5.50% - and they're saying it might be 2025 before rates start to come down again. But global uncertainties, deflationary forces in China and the upcoming election has everyone holding their breath.

We all underestimated the extent to which prices would rise when the pandemic struck in early-2020. Now, almost everyone has underestimated the extent to which prices, and sales, are heading down now that the pandemic is over and the inflation resulting from excess stimulus needs to be brought under control.

It's pretty scary out there right now - but despite appearances, the foundations are already being laid for the housing market's recovery.

With the Reserve Bank's predictions of a recession, an unemployment rate of 5.7% and high inflation, businesses and consumers alike have had to sharply rein in their spending plans on everything but groceries, including housing. But will the fear pass with time, or simply worsen?

This one's going to hit homeowners hard. Here's what to expect from mortgage rates, and what to do if your mortgage is coming up for renewal.

Over the past year or so we have seen a decline in the number of properties sold from 100,000 down to about 68,000. The OCR has just jumped up, and things are about to get worse.

We can unequivocally say that house prices are going down, but the pace of decline in house prices is slowing. When will house prices bottom out?

The Reserve Bank met expectations this week with another 0.5% increase in the official cash rate so it now sits at 3.5% compared with the record low just over a year ago of 0.25%.

Independent Economist Tony Alexander gives us a breakdown of what is happening in financial markets and the housing market.