New Zealand Economy Well Placed to Handle Surge in Rates, RBNZ Says

SYDNEY—New Zealand’s financial system is well placed to handle rising interest rates and uncertainty in the international financial system, the Reserve Bank of New Zealand said in its latest report card on financial stability.  New Zealand households are facing increased debt servicing costs due to rising interest rates, but levels of loan default are low, RBNZ Governor Adrian Orr said in a statement.  “To date there have been limited signs of distress in banks’ lending portfolios, with only a small share of borrowers falling behind on their payments,” Mr. Orr said. “This reflects the ongoing strength of the labor market…