Christoph Schumacher

If the economy starts slowing down, if inflation now has gone outside the band but hovers there, that's probably a good sign because the mandate of the Reserve Bank is in the medium term.

They don't need to respond immediately.

They need to keep it between around 3% in the medium term.

So they can take their time with rises.

So check inflation and check GDP growth.

Let me be very German here because Germans tend to be quite conservative in their spending.

Make sure you have a built-in buffer.

Don't leverage yourself up to your eyeballs.

When I came to New Zealand, the first thing I realized is that people buy now and pay later, where the German way is the other way around.

You save first and then you buy.

So make sure there is a buffer because small economies do get hit by these shocks and things can change very quickly.

But as long...

If you have a bit in reserve, you should be fine.

So make sure you have a bit of a buffer.