interest rate rises
adsense

PHOTO: It has been seven years since the Reserve Bank last raised its official cash rate, currently sitting at 0.25 percent, but higher rates are here and on the global horizon. Photo credit: RNZ

Investors are set to face new challenges as strong inflation pressures look set to trigger interest rate rises.

It has been seven years since the Reserve Bank last raised its official cash rate, currently sitting at 0.25 percent, but higher rates are here and on the global horizon.

The big banks had already lifted deposit and lending rates in anticipation of a RBNZ move, possibly as soon as next month.

Financial Services Council chief executive Richard Klipin said prudent investors should review their investments and check in with their financial advisers.

He said this was particularly so for a growing number of younger investors who had become enthusiastic users of apps such as Sharesies and Hatch, which offer an opportunity to buy smaller stakes and big companies at low entry prices.

“I think that’s always on topic for investors, absolutely. Markets are changing all the time. Contexts are changing all the time and the stop in the fall of interest rates and probably plateauing out before they increase so yeah … investors are making wise decisions all the time,” Klipin said.

“We’re in a pretty delicate position here in New Zealand but also globally in terms of the outlook.”

READ MORE VIA NEWSHUB