Following the Reserve Bank of New Zealand (RBNZ) announcing that it would keep the Official Cash Rate (OCR) at 5.5 per cent, the latest Consumer Price Index (CPI) announcement by Stats NZ has seen a drop in inflation to 4 per cent, its lowest rate since June 2021, down from 4.7 per cent in the December quarter.
Whilst this is welcome news for businesses and households, the rate of inflation is still falling slowly, prompting the RBNZ to reiterate that the OCR still needs to stay at a ‘restrictive level’ for a sustained period of time. This means that interest rates, which are significantly influenced by the OCR, will also remain high as has regularly been predicted and reported.
These elevated rates have seen the financial pressure on businesses and households gradually increasing, with recent figures illustrating the extent of the problem. Consumers have found their disposable income declining, resulting in a 1.9 per cent reduction in retail sales in the December 2023 quarter, small to medium-sized businesses recording a fall in productivity last year and the Companies Office recently reporting that 282 companies went into liquidation, receivership or voluntary liquidation last month, the highest number in nine years. With unemployment also on the increase, this is all proof, if proof were needed, that business and household resilience will be further tested in the months ahead.
I again ask you to please continue to support your local business community by shopping locally whenever you can.
Source: Networker Magazine
Business North Harbour Staff Contacts
Kevin O’Leary – General Manager
Bernadette Roberts – Marketing & Events Manager
Sandra Craze – Transport Projects
Dave Loader – Crime Prevention Specialist
Kate Thorpe – Office Manager
Business North Harbour Office
Telephone: 09 968 2222
Address: Level 1, 322 Rosedale Road, Rosedale
Website: www.businessnh.org.nzBUSINESSECONOMYMEDIA RELEASE
