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An update from Chris Hand
Hi everyone,
Just when we all expected to have more certainty in the economy, the conflict in the Middle East has thrown us all a massive curveball.
What exactly this will mean for New Zealand is still unknown, with various economists predicting different outcomes. Two distinct schools of thought exist here, with one camp predicting the Reserve Bank will fight inflation with higher interest rates, and the other suggesting that higher prices will result in a global downturn.
One comforting thought is that the Reserve Bank will want to remain calm and higher inflation should work its way out depending on how long the conflict goes on. The target is 2% inflation and the Reserve Bank will do everything they need to, to get there. Rest assured, we’ll be keeping a close eye on the situation and will ensure we keep you updated.
We’re aware that some of your customers may find any future global escalations concerning or be struggling financially and if they are, please encourage them to reach out to our team.