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In This Issue
1. Message From The President
2. Reserve Bank Cuts
3. Sign Up For Full Experience
Thank You!
Dear fellow members and attendees
I hope this message finds you well. I would like to extend my
heartfelt thanks to each of you for attending the Fiji Business Network event
on 22 August 2024 at the Remuera Club, as well as our first Annual General
Meeting. Your participation and support are invaluable to our mission of
advancing Fijian-owned businesses in New Zealand.
As we discussed during the meeting, the three existing
executives will continue to oversee the organisation’s operations this year. We
sincerely need the help and support of all our members to spread the good word
about our Network. Together, we can drive growth and support for Fijian-owned
enterprises in our community.
We also welcome our new members to the network. Our
organisation added 18 members on the night, so we are now close to 90 paid
members, a great effort by Sonali and Rachael in encouraging folks to join for
a great business journey ahead.
Our final CHRISTMAS GALA event is planned for 14 November 2024
at the Remuera Club and we are expecting more than 150 attendees!
Thank you once again for your commitment to our cause. Vinaka
Vakalevu! Let’s continue our good work and make a lasting impact.
Warm regards,
Atesh Bhej
Fiji Business Network Inc
Reserve Bank Cuts Official Cash Rate
What You Need to Know
OCR Reduced to 5.25%
The Reserve Bank of New Zealand (RBNZ) has announced a cut in the Official Cash
Rate (OCR) to 5.25%. This decision ends a four-year period of OCR stability and
comes after extensive speculation about the potential for a rate drop.
Context of the Cut
The reduction follows two years of efforts to control inflation, amid rising
unemployment and sluggish economic growth. The annual inflation rate has
recently fallen to 3.3%, although it remains above the Reserve Bank's target
range of 1% to 3%. The central bank's monetary policy committee cited a
broad-based weakening in domestic economic activity and a return of business
inflation expectations to around 2% as key factors in their decision.
Immediate Bank Responses
In reaction to the OCR cut, Kiwibank swiftly reduced its variable home loan and
business lending rates by 0.25%, and adjusted some deposit rates. ASB followed
shortly after, lowering all fixed and floating mortgage rates. Kiwibank's Chief
Business Customer Officer, Elliot Smith, emphasized the importance of these
cuts in providing financial relief and enhancing affordability for customers in
a high-interest environment.
Economists’ Perspectives
Economists had mixed views leading up to the RBNZ’s decision. Some believed a
cut was timely, given recent inflation data. ASB Chief Economist Nick Tuffery
noted that while the decision was close, the Reserve Bank likely needed to act
sooner rather than later to avoid the risk of having to make larger cuts in the
future.
Impact on Borrowers and Savers
The OCR is a key rate influencing the cost of borrowing and saving.
Historically, higher OCR rates result in increased loan repayments for
borrowers, while offering better returns for savers. As the OCR rises, it
typically encourages saving overspending. The current rate cut aims to ease
some of these pressures, potentially offering more favourable conditions for
borrowers.
Looking Ahead
Tuffery pointed out that the Reserve Bank might want to temper market
expectations for further cuts, balancing between cautious easing and
maintaining control over inflation.
Now would be the best time
to start reviewing your mortgage structure and get in touch with your Mortgages
team to discuss options for refinancing and restructuring.
Sign Up For Full
experience
As an organisation primarily focused on connecting and helping
our fellow Fijians thrive New Zealand’s commercial sectors.
We are all about spreading the good word.
It has taken a good deal of work and planning to this point, and
we are excited that 2024 will be a year of progress.
We are keeping it simple, with membership rates starting at
$25.00 per year. The membership fee runs through to 31 March 2025.
Head over to our website, spread the good word, and encourage at
least 3 new parties to join our network. It is quite simple to join.
We are confident that once we have reached our goal of 200
members, we will be better placed to grow our visibility at Government and
institutional levels.
This undoubtedly will have
a multiplier effect on our members, our organisation, and the overall success
of Fijian businesses in New Zealand
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