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One year later Xin contacts you for further advice. She has read in the media that, while inflation currently sits at 3%, it is rising
One year later Xin contacts you for further advice. She has read in the media that, while inflation currently sits at 3%, it is rising and is expected to reach 8-9% in the next six months. You note that with your help, Xin obtained a $600,000 home loan. 50% is a table loan with a three-year fixed rate and 50% is a revolving credit facility. b. Prepare a response for Xin in which you: i. predict the action the Reserve Bank of New Zealand will take in response to rising inflation. Explain why it will take this action ii. analyse how and why rising inflation will impact Xin's home loan
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