Kapiti Financial Advice Limited – KiwiSaver and Investment
Today’s Quarterly Survey of Business Opinion release has provided the first opportunity to gauge the sentiment of economists towards the present easing cycle in the wake of a challenging environment – uncertainty over the pace of easing in the US following signs of a resilient US labour market, the dilemma posed by President-elect Donald Trump’s … Read more
The RBNZ kept the OCR unchanged at 5.5%, as was universally expected. The focus of attention is whether the first cut will come in November, or whether the Bank will wait until February. The final review this year will be on the 27th November. The next review is not until 19th February 2025. So, there … Read more
Reserve Bank expected to start cutting rates later this year Markets and economists are now expecting the Reserve Bank of New Zealand to start cutting its benchmark interest rate this year and wholesale interest rates have moved down in anticipation. Last week’s Consumers Price Index release supported the view that domestic-driven inflation pressures are easing, … Read more
A number of factors suggest that the Reserve Bank is backing away from further cuts in the Official Cash Rate next year, as had been previously foreshadowed. This doesn’t mean that bank lending rates are on hold, rather the Reserve Bank is putting more reliance on another transmission mechanism – the new Funding for Lending … Read more
Last week’s REINZ property statistics indicated that lower and lower interest rates are feeding into higher and higher property prices, with buyers taking advantage of low interest rates and serviceability to get into a market that some fear will keep rising. In short, fear of missing out is trumping any concerns that the full extent … Read more
Today the Reserve Bank released its August Monetary Policy Statement, noting that accommodative monetary policy is complementing fiscal policy by reducing interest rates. There will continue to be downward pressure on interest rates as the Reserve Bank continues to provide support to the economy, in the midst of an environment where inflation and inflation expectations … Read more