Another reduction in the Official Cash Rate (OCR) by 50 basis points to 3.75% was a piece of much needed good news in February, with further cuts being predicted in the coming months. The latest cut and any future reductions in the OCR are all based upon the fact that the Reserve Bank of New Zealand (RBNZ) is confident that it has inflation under control, sitting at 2.2% in the December quarter.
This latest reduction may not have had a significant impact on interest rates, as a number of the banks had already reduced their rates in anticipation of the OCR announcement, but any reduction has to be seen as a positive.
Unfortunately, despite this good news, many businesses and households continue to battle financial pressures as they wait for fixed-term loans to reach their conclusion, or they wait for the reductions in interest rates to have a tangible effect on their income, cashflow and budgets.
These effects may take longer than expected to materialise as unemployment continues to rise and people are still facing increasing costs for everyday essentials such as food, petrol and rent.
There are some positive signs that the current financial pressures will ease over time, with a recent small increase in business and consumer confidence reflecting this positivity. I sincerely hope that those businesses and households that are continuing to feel the financial strain will find their way through these difficult times to enjoy a much more positive future.
Finally, please keep shopping local!
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.nz
