Dawn chorus: NZ interest bill 0.3% GDP
Govt finance costs to fall to $1b by 2023 despite quadrupling of debt as interest rates fall under 1%; Govt could borrow $400b for the cost of $4b of rent subsidies; Fed set to print more for longer
TLDR: Treasury upgraded its outlook for the economy and the Government’s finances yesterday in its half yearly update (HYEFU), forecasting a $25b reduction in deficits and borrowing over the next four years. New Zealand’s net debt could rise to just 43% of GDP, which is less than half that of other AAA-rated countries.
The Government’s financing costs w…
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