Q3 Annual Inflation at 2.2%

Written By Kim Manunui

Announced by Stats NZ today, 16th October, for the quarter to Sept 2024 the annual inflation rate is reduced to 2.2% down from 3.3% in the June quarter in line with expectations from the Reserve Banks latest OCR reduction last week.

THIS IS GREAT NEWS given it hiked to 7.2% in July 22 with restrictive monetary policy in place ever since to bring it back under the 3% range with a target midpoint of 2%.

WE’RE THERE … so NOW we can expect more easing of the OCR and in turn interest rates with an expected further OCR drop in November of likely another 25 basis points to 4.5% and more to come next year. That remains to be seen but all indicators point to an imminent reduction, potentially further than stated above.

So for the first time since March 2021 we’re back in the Reserve Banks target band of 1 – 3 percent, back under control, and thank goodness for that.

Click here to head to the Stats NZ website for the full announcement.

As expected, since the OCR reduction last week there has been a rally of interest rate cuts across the board of banks, non-bank lenders and finance companies with most banks passing the full 0.5% reduction on in their floating rates with fixed rate cuts, the likes of 1 year rates now around 5.99%. With impending further cuts expected, shorter fixed rate terms are typically the order of the day for now.

So watch this space … there will be more where that came from in the coming months, its great we’re finally working our way back to normality and a workable range of interest rates at pre covid levels when all was well … just don’t expect it to go back to post covid rates that were a short term economic stimulus response that caused all the pain in the first place.

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
Previous

September 2024 Insights from Strettons
Next

Reserve Bank (RBNZ) cuts OCR to 4.75%