A race to the bottom

Written By Kim Manunui

If banks are the race horse, the Reserve Banks the jockey.

While banks are chomping at the bit to bring interest rates down with some active competitive easing out there … the Reserve Bank (RBNZ), on the other hand, is saying ‘whoa, steady up there ol’ boy’, with a firm hand on the reins to maintain the Official Cash Rate (OCR) at a steady pace to ease the economy back into form while inflation abates, net migration calms down and we get back to a sustainable operating pace with inflation back around 2 - 3% being the main factor, its currently at 4.6% having come off its rampant highs of 7.6% in 2022.

So once we start getting results there we’ll start seeing the jockey give the horse a bit more rein, the OCR dialled back and interest rates follow and while there might be tweaks later in the year, it’ll take about a year for any real easing in interest rates to 18 months when we start to really see some useful results and we can race to the finish line around the end of 2025 and be done with this particular phase in the cycle and the end of the race.

So at the moment, the RBNZ is winning the race while pulling back on the reins to let the rest of the field catch up so we can all come in together. AND THEN … we’re back on track for some economic growth in a sustainable manner and crack on from there at a steady gallop rather than the steeplechase we’ve been through … with all being well in the world.

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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