Reserve Bank cuts Official Cash Rate to 5.25%

Written By Kim Manunui

The Reserve Bank has announced the first cut in the Official Cash Rate some 15 months since it climbed to 5.5% in May 23 and the first cut since March 2020, a whole 41 months ago when it was dialled down to 0.25% when all the craziness started.

To say this is good news is to say Lisa Carrington is a good rower … it’s GOLD!

So finally!!! we’re officially on the move since holding the OCR at restrictive levels for the last 15 months and more since it started climbing 20 months prior to that while inflation eased from its peak of 7.2% in July 22 and now at 3.3% shouldering the RBNZ targeted under 3% band.

Most banks have already dropped floating rates accordingly by about 0.25% being the first time floating rates have dropped with previous token adjustments having been in select fixed term rates only, this is the start of things to come, breathing life back into the economy just a bit but more importantly injecting a shot of confidence into the market that things are looking up … after some 35 months of driving with the handbrake on … we can now move a bit freer.

So from here, we’re on the downhill run to interest rates easing in earnest in the coming months and year … something we’ve been talking about for a while, and as the Reserve Bank Governor Adrian Orr put it, “its darkest before dawn and we’re in dawn at the moment” with a view to “economic activity re-normalising as interest rates come back down and inflation pressure taking out”, we’re now heading in the right direction at a steady and controlled pace which is the right strategy to avoid the bends.

Check out the the Reserve Bank official report here >>> www.rbnz.govt.nz/hub/news/2024/08/ocr-5-25--monetary-restraint-tempered-as-inflation-converges-on-target

… and a handy little link to how it works with some videos here >>> www.rbnz.govt.nz/monetary-policy/about-monetary-policy/the-official-cash-rate

Exciting stuff … we’re going to enjoy reporting on progress from here … we turned a corner in the right direction today.

Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

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And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
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