Following the easing of its restrictive monetary policy by the Reserve Bank of New Zealand (RBNZ), a further reduction in the Official Cash Rate (OCR) of 50 basis points to 4.75 per cent was announced in October, providing the opportunity for banks to reduce their interest rates in response.
In more good news, the Consumer Price Index (CPI) which provides a measure of inflation, was also down to 2.2 per cent, the first time that the figure has fallen within the RBNZ’s target of between 1 – 3 per cent since March 2021. This figure could have been even lower if it wasn’t for rising rents and council rates, which have increased on average by 4.5 per cent and 12.2 per cent respectively.
With inflation easing and predicted to ease further, the cost of living crisis is slowly coming to an end, with Finance Minister Nicola Willis stating that “The era of crushing price rises is now over”, I hope she’s right.
Whilst there is genuine optimism that we should expect a further reduction in the OCR in November, we’re not out of the woods yet, as many people wait for fixed-term loans to expire. Additionally, there will be a lag before consumer spending shows a sustainable increase and the current increase in unemployment is likely to continue in the short term at least. Whilst the signs are encouraging, we still need to keep supporting our local businesses by shopping local and utilising locally available goods and services.
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
