That ought to provide a boost to the economy which is sorely in need of the confidence which fosters investment which in turn leads to growth and more job opportunities.
Most of the the primary sector – particularly sheep, beef, dairy and horticulture is doing more than its fair share. Cities need to catch up.
A reduction in interest rates does however, come with the risk of boosting inflation which is heading close to the upper limit below which the Reserve Bank is required to keep it.
More spending restraint from governments, central and local, will play an important part in reducing that risk and that too will help give businesses confidence that better times are ahead.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
A reduction in interest rates does however, come with the risk of boosting inflation which is heading close to the upper limit below which the Reserve Bank is required to keep it.
More spending restraint from governments, central and local, will play an important part in reducing that risk and that too will help give businesses confidence that better times are ahead.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
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