As New Zealand grapples with economic uncertainty, the Reserve Bank’s recent interest rate cut offers a glimmer of hope for businesses. However, with consumer spending still cautious and rising unemployment looming, businesses must strategically prepare for the challenges ahead. Luke Fossett outlines key strategies for navigating this transitional period and optimising cashflow in a shifting market.
The Reserve Bank’s big call to cut the OCR by 50bps to an 18-month low of 4.75 percent is obviously welcome news for businesses and households alike. Even after August’s prudent 25bps cut, official data has suggested that bleak economic conditions persist in New Zealand – meaning more action is needed.
Softening inflation means some welcome relief for consumers but it’s tough being a business in New Zealand right now. The local economy is weak and rising unemployment will continue to cast a long shadow in the months ahead. Thankfully, the easing of inflationary pressures has granted the central bank …