Whilst the long-standing financial pressures that many businesses and households have been enduring are here to stay for a while longer, the recent softening of the Reserve Bank of New Zealand’s (RBNZ) tone in its financial statements is cause for optimism. Indeed, in anticipation of an earlier than expected cut in the Official Cash Rate (OCR), possibly as early as this month, some banks have already made small cuts in their interest rates. This hopefully signals the easing of significant financial stresses that many people have been dealing with for a considerable time.
That said, we have to be realistic, this is no silver bullet and things won’t change dramatically for the better overnight, but at least it’s a step in the right direction. The economic climate remains very difficult, with many businesses working extremely hard just to remain operational as consumer spending continues to decline. However, the recent fall in inflation to 3.3 per cent, which is almost at the 1 – 3 per cent level that the RBNZ has been aiming for, is another indicator that we’re hopefully not too far from seeing a muchneeded easing of the harsh monetary policy that has been in place to get inflation under control.
For the first time in a long time there’s finally a light flickering, albeit dimly, at the end of the tunnel.
Once again, I ask that you please continue to support your local business community by shopping locally whenever you can.
Kevin O’Leary
General Manager, Business North Harbour
SOURCE: Networker Magazine
