These Are 'Interest-ing' Time We Are In
In a surprising move last week, the Reserve Bank slashed the Official Cash Rate (OCR) down to 1%, supposedly to reflate New Zealand's flagging economy.
The rate cut was expected, however only by .25% points to 1.25%. Cutting by half a percentage point has only ever ocurred 3 times in New Zealand since OCR's introduction in 1999; after the September 2001 terror attacks on the US, the 2008 GFC and the Christchurch earthquakes.
All in all this is big news for New Zealand, however what does it really mean? As expected, there are many and varied opinions on the matter, not least of which relates to less dollars being paid out to savers and those of retirement age.
For more insight, here's initial analysis from the NZ Herald* which sums it up nicely.
As a farmer, Christine understands our business and how farmers and growers operate.
We use Rural Accountants to provide a full accounting service to an orcharding partnership which operates a number of orchards with a wide spread of varieties and management systems. Rural Accountants are always timely and accurate, and their annual financial accounts are extremely easy to understand and very grower-friendly.
Rural Accountants is a real asset to our business.
The team at Rural Accountants pretty much manage all our administrative tasks for the group including payroll and tax planning, ensuring we don’t pay any more than necessary. They are at the forefront of technology and have helped us get up and running with Xero and Figured which is much more efficient than the way we used to work.
Christine is very knowledgeable, great to deal with and knows our business well. She is also a sheep & beef farmer so knows the industry really well and understands our needs.
Rural Accountants keeps us on track through strategic and forward planning meetings throughout the year. Christine knows our business inside out so she can deal with our questions instantly.