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
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
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
Low inflation has been behind a more generalised theme of low interest rates in recent years. More immediately, the desire of central banks around the world to provide support through low interest rates has also played a significant role, particularly as the Covid-19 outbreak has taken hold. This was evidenced by the RBNZ slashing it’s … Read more