Economic weather report: New Zealanders hoarding more cash

Bernard Hickey delivers an Economic Weather Report in association with ASB, including a look at a chart showing New Zealanders appear to be using and/or hoarding more cash in the last six months. This hoarding has consistently grown and is nearly at the levels seen in the last days of 1999.

Category:

News & Politics

Tags:

• weather report
• economy

[nextbay]

Very interesting.

More people maybe trying to avoid the tax man by work in the black market.This could also be a sign of the confidence people have in the financial institution.

[caveltor]

M0 includes reserves.

Perhaps that spike is not the public holding cash but additional reserves introduced to lower short term interest rates via OMO and other RBNZ facilities.

Does that spike coincide with the reduction in the OCR?

[linuxluver]

I rarely use any folding money at all.....so there must be a lot of trades people, dentists and others working off the books these days.

[cadfael55]

VERY interesting report. People don't trust banks or the government.