Newmarket Business Association
Media Release
10 September 2008
Interest rate cut tomorrow would lift national mood
Auckland's leading retail district believes if Reserve Bank governor Alan Bollard announces another official cash rate
cut tomorrow morning it would give much needed boost to the mood of the country after a long, cold and wet winter.
"There is just so much uncertainity and apprehension out there at the moment. We're only two months from a likely
watershed general election but no one knows exactly when it's happening. What's more businesses' margins are so squeezed
and overall consumer confidence is low. A cut in interest rates would be viewed very positively by the likes of New
Zealand's retailers," says Cameron Brewer, head of the Newmarket Business Association.
"What we're finding is the retailers accross the country who's target market is middle-of-the-road New Zealanders are
hurting. Middle income Kiwis have really been hit in the pocket over the past year with soaring costs. Any relief to
their disposible income, via a cut to interest rates, would be a boost to their spending power and confidence."
"While there's a lot of talk that some statistics are pointing to a lift in the country's economic performance, the
reality is the average Kiwi is hurting. A cut to the Official Cash Rate would provide instant relief where it matters.
Coupled with tax cuts in October, middle-income earners will be feeling better about themselves and that's good for
business," said Cameron Brewer.
ENDS