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Interest Rate Cuts Coming Sooner than Envisaged

Interest Rate Cuts Coming Sooner than Envisaged

The Wellington Regional Chamber of Commerce has welcomed the statement from the Reserve Bank that a cut in the official cash rate (OCR) is likely to come later this year - sooner than previously envisaged.

“While many businesses will be disappointed that there was no reduction today, the statement shows that there is light at the end of the tunnel,” said Chamber CEO Charles Finny.

“High interest rates are having a double whammy affect on businesses not only through their own high debt servicing costs but also through reduced consumer demand.

“High interest rates are amongst our members’ most commonly cited concerns and today’s statement, as well as the financial market’s reaction, will provide a much needed boost to business confidence.

“As the economy weakens and inflationary pressures subside, we believe the case is building for the Reserve Bank to cut the OCR as early as September and we will be watching developments closely,” Mr Finny concluded.

ENDS

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