High interest rates appear to be here to stay for a while despite another announcement in August that the Official Cash Rate (OCR) would remain unchanged at 5.5%. Whilst this is good news on the surface, because inflation is only tracking down very slowly, the Reserve Bank of New Zealand (RBNZ) has indicated that interest rates may not start to reduce until late 2024 or early 2025.
Sadly, businesses that are finding the ongoing tough economic climate difficult to manage are going to have their resilience further tested for quite some time, as they endeavour to meet any loan repayments and keep the business operating on a financially sustainable basis. For many, the bottom line which has already been badly affected in recent years, is going to have to withstand some more pressure, as the cost of raw materials, goods, services and employee wages continue to rise, at the same time as income is reducing with consumer spending on the decline as more people have to prioritise their spending. More and more businesses are having to operate in survival mode as they do whatever they can to keep the doors open.
Unfortunately, there is a shortage of positivity around at the moment as many businesses try to navigate their way through these difficult times, so as these challenges continue to bite, I 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
