The recent Official Cash Rate (OCR) announcement which saw no increase in the rate was welcome news, but the reality for many businesses is that ongoing high interest rates which are one of the consequences of the many previous OCR increases, are crippling some business owners as more and more struggle to make their various loan repayments.
Sadly, an increasing number of businesses are having to make difficult operational decisions including reducing staffing levels, as a decline in consumer spending as disposable income reduces for many people, sees a corresponding decline in business income. This has resulted in problems managing their cashflow for some business owners, which comes as a fresh, although not totally unexpected blow to many businesses who have been struggling to survive the significant challenges of recent years.
There appears to be no respite in sight as the OCR is set to remain at a ‘restrictive level for the foreseeable future’ whilst the Reserve Bank tries to lower inflation to its target of 1–3%. Economists are also predicting that despite the recent fall in the rate of inflation to 6%, which although still high is a step in the right direction, the high interest rates that are affecting us all are unlikely to fall until next year, with any lowering being a gradual process.
As the struggles for many businesses continue, I would again ask you to continue to offer your support to our local businesses by buying local and utilising locally available goods and services
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.nz
