Greetings,
Finally – a drop in the O.C.R. has signaled that we have had enough pain. This cut was predicted by most of the market however some banks economists thought it was too soon. I for one am very happy to see the start of the O.C.R. cuts with some banks estimating at least 1% more cut by end of 2024 & another 1% of cuts in the first half of 2025.
Please talk to us about your interest rates if you are looking to fix or are coming off a very good fixed rate.
This will have a huge impact on the economy. I was in Christchurch earlier this week & there was no one about. My Uber driver said that since covid, people come into town for work & go home with the exception of Friday night & the weekends. He blamed the mortgage interest rates sucking the disposable dollars from the family budget. Locally I see this impacting on retail & hospitality sectors, so along with the recent tax cuts the interest rate drops will be celebrated by clients in those sectors. Our farming clients will also be celebrating as their higher levels of debt will benefit from the much lower fixed rates now on offer. The wonderful news from Fonterra will also help.
We are looking to establish a small group of business clients wanting to grow their business, or improve their business for sale/retirement or succession. If you are interested in being part of our business advisory group, please contact the office.
All the best for a warmer, wetter spring, & hope calving goes smoothly.
Cheers,
Mark
