Uncertainty now seems to be the order of the day following recent events both offshore
and at home, with the tariffs introduced by America on numerous countries having caused some volatility in share markets, with many still wondering how extensive a predicted trade/ tariff war will be and what effect it will have on the global economy. The unpredictability of the situation is keeping economists guessing as to what the effects on the NZ economy will be.
The uncertainty also has economists speculating about our economic growth moving forwards, which many believe will be slower than predicted. Opinions are also divided on how the Reserve Bank of New Zealand (RBNZ) will manage the Official Cash Rate (OCR) in response to this economic uncertainty. In April the RBNZ reduced the OCR to 3.5 per cent, based upon the fact that inflation sits around the mid-point of their 1 – 3 per cent target. However, the RBNZ noted in its press release that “the implications of increased tariffs for global and domestic inflation are more ambiguous” also stating that “as the extent and effect of tariff policies become clearer, the Committee has scope to lower the OCR further as appropriate.”
With some banks reducing interest rates in response to the reduction in the OCR, which is good news for those people able to take advantage of a reduction in their mortgage or other loan repayments, we can only hope that the effects on our economy and inflation are kept to a minimum.
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
