Interest Rate Cut will Provide Welcome Boost for Businesses

The Wellington Regional Chamber of Commerce welcomes today’s 0.5% cut in the Official Cash Rate and urges the banks to follow suit with interest rates reductions.

“High interest rates are amongst our members’ most commonly cited concerns and today’s move will provide a much needed boost to business confidence,” said Chamber CEO Charles Finny.

“High interest rates have had a triple whammy affect on businesses and the economy through high debt servicing costs, reduced consumer demand and also the effect on the currency.

“We agree with Reserve Bank Governor Alan Bollard’s assessment of the domestic and global economy and that a less restrictive monetary policy stance is appropriate.

“We believe falling oil prices and the slowing economy will offset the inflationary impact of a lower New Zealand dollar and today’s greater than expected cut was justified.

“We are pleased with the financial markets initial reaction to the statement and the fall in wholesale interest rates.

It is now up to the banking sector to pass on these reductions to both businesses and households quickly,” Mr Finny concluded.

ENDS

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