ANZ partnered with Roy Morgan to produce the Financial Wellbeing Indicator. It is an overview of the personal financial wellbeing of New Zealanders and is intended to act as a ‘pulse check’ on how Kiwis are feeling about their financial wellbeing.
Financial wellbeing is defined as a person’s ability to comfortably meet their financial commitments now and into the future.
The FWB Indicator is made up three key components – feeling comfortable, ability to meet commitments and resilience.
The Feeling Comfortable indicator fell by just 0.1 per cent in the quarter to 49.2 per cent, down from 49.3 per cent. While things did not get any better, they didn’t get a lot worse leaving the score at its lowest point.
Looking at events over the quarter, in February the Reserve Bank of New Zealand increased the Official Cash Rate (OCR) by 50 points, from 4.25 per cent to 4.75 per cent. A year earlier in February 2022 the OCR was just 1.0 per cent.
The increase in interest rates has set the tone for the last year as the Reserve Bank tries to lower the inflation rate by reducing demand.