Media release

Newmarket Business Association

Thursday 4 December 2008

Interest rate cut great for Christmas retailing

Reserve Bank Governor Alan Bollard's dramatic cutting of the official cash rate this morning is great news for New Zealand's retailers three weeks before Christmas, says Auckland's leading retailing district.

"This is a good morale booster for consumer confidence and discretionary incomes. The cut comes on top of petrol prices falling and October's tax cuts so it's all good for the back pocket. April's tax cuts will provide another boost," says Cameron Brewer, head of the Newmarket Business Association.

"Households have been really squeezed, and so subsequently it's been a tough year for many of the country's retailers. Taking the slasher to interest rates is welcome relief. Christmas is looking brighter."

ENDS