The run of consecutive cuts in the Official Cash Rate (OCR) which we had enjoyed over recent months came to an end in July, with the Reserve Bank of New Zealand (RBNZ) keeping the OCR at 3.25 per cent, citing the current global economic uncertainty and the need to keep on top of inflation as two of the key factors in their decision. Most economists had predicted that this was the likely outcome, but many are hopeful that there are more cuts ahead, which the RBNZ has indicated is a possibility in the coming months. Should any further cuts in the OCR materialise, it will be interesting to see how the banks react and just how far they are prepared to lower their mortgage and business loan interest rates in response.

With the cost of food, power, Council and water rates still on the increase and economic growth continuing to be a struggle, it’s little wonder that our businesses, like many households, are still doing it tough. Empty commercial premises have become a far too familiar sight in our business communities, with the holy grail of sustained economic recovery still proving to be elusive for too many of our local business operators. Consequently, it remains of paramount importance that, as far as is practicable, each of us continues to support our local businesses as much as we can. Our local business districts, town and village centres play a vital role in supporting our local communities and our local economies. They offer local employment opportunities to local people and offer us all the convenience of local accessibility, which will become even more important when, not if, time of use charging is introduced on our road network.
I fully understand that levels of disposable income have reduced significantly for too many people over recent years and that many household budgets are now tighter than ever, but I would encourage you to keep shopping locally and using locally available services. If you can manage to maintain your support for your local businesses, it will hopefully mean that we won’t see a further increase in the number of commercial premises lying vacant as more businesses weren’t able to survive the extremely difficult economic climate that has already claimed so many.
While our economic recovery remains somewhat laboured, there is a general feeling that the positive economic outlook for the current year, which was in 2024 heralded in the mantra of "survive to 2025'" will come to fruition next year. Please feel free to make your own catchphrase to rhyme with 2026.  
While we still search for that holy grail, thanks in advance for your continued support of our local businesses.
 
businessnh.org.nz
09 968 2222
027 479 9563
kevin@businessnh.org.nz