I certainly don’t see much evidence that, at these lower interest rates, New Zealanders will be rushing to increase their savings in order to fund our on-going appetite for borrowing.
Even at the higher interest rates which prevailed earlier in the year - allegedly the highest real interest rates in the developed world - New Zealanders were enthusiastic borrowers and reluctant savers, at least in fixed-interest form, suggesting that, whatever the arithmetical calculation implied about real interest rates, most New Zealanders did not perceive interest rates as particularly high in real terms.