It’s all going to plan

Written By Kim Manunui

We’ve been saying for a while now that the Reserve Bank’s (RBNZ) monetary policy of controlled easing of the economy, bringing everything down gently to a soft landing is the right approach and its paying off.

We’re in the final stages being over half way through the easing cycle with inflation back under control and home mortgage rates a full 2% below the peaks seen in 22/23.

With the OCR likely to be reduced by 0.5% to 3.75% on Wednesday, it’s not necessarily a direct route to the bottom as interest rate volatility can flow into home mortgage rates however given time and playing the long game we’re expecting the OCR to ease three more times throughout the year to around 3.25% and potentially a fourth to settle at 3%.

So we’re moving in the right direction with calls to cut harder and faster and bring the OCR to a terminal rate of 3% and get the economy moving again easier and quicker, then we’re also in a position to move quickly into economic stimulus territory of under 3% if geopolitical factors, Trumpian economics and trade wars bite us and raise it slightly again in a couple of years if need be when the economy is fully recovered.

So with Wednesdays Feb 19th OCR announcement likely to be the last large cut at 0.5% and mortgage interest rates to follow, we’re on the road to finally getting some stimulus back in the economy which will flow on through to business confidence and house prices turning to an upward trend again nice and steadily.

Click here to check out the Good Returns website article for more on that.

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.

The digital world is never static and neither are we.

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,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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