{"id":66484,"date":"2025-10-08T22:44:08","date_gmt":"2025-10-08T22:44:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/66484\/"},"modified":"2025-10-08T22:44:08","modified_gmt":"2025-10-08T22:44:08","slug":"reserve-bank-rate-cut-signals-economy-turning-a-corner-says-nicola-willis","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/66484\/","title":{"rendered":"Reserve Bank rate cut signals economy turning a corner, says Nicola Willis"},"content":{"rendered":"

Interest rates would only just begin flowing into the economy as people began to refix their mortgages, she added.<\/p>\n

\"FinanceFinance Minister Nicola Willis says early data shows growth returned in the September quarter. Photo \/ Mark Mitchell<\/p>\n

As Economic Growth Minister, Willis said it was \u201ceasy to say that I\u2019m the problem\u201d and reiterated that inflation and a spike in interest rates had \u201cstrangled the economy\u201d over the past three years.<\/p>\n

She simultaneously announced changes to Government procurement policy<\/a> – coined a \u201cprocurement for growth policy\u201d – that would simplify the rules and give businesses a stronger chance to obtain all or parts of state contracts, collectively worth more than $50 billion a year.<\/p>\n

She acknowledged that this could drive up government costs, but said the flow-on effects would have a greater benefit for businesses and workers.<\/p>\n

\u201cIn some cases, international firms will still win contracts, but they\u2019ll be more likely to win those contracts in future if they\u2019re using a Kiwi subcontractor, or they\u2019re demonstrating that they\u2019re doing training for Kiwi workers, hiring New Zealanders in jobs that might not otherwise exist.\u201d<\/p>\n

Squirrel chief executive Peter Cunningham told Bridge that, for mortgage holders, a subsequent fall in term deposit rates was more important than yesterday\u2019s OCR cut. He argued that the Reserve Bank should make a similar cut in November to get the economy \u201cout of this funk\u201d.<\/p>\n

Monetary policy settings had only just moved from contractionary to stimulatory after the Reserve Bank\u2019s decision, he said, noting that the economy had been in recession \u201cfor the best part of two years\u201d.<\/p>\n

He forecasted a further reduction of 10 to 25 basis points before the end of the year, putting the one-year mortgage rate at about 4.25%, \u201cunless the Reserve Bank is bold and does another 0.5, which is what I\u2019ve been advocating for a while\u201d.<\/p>\n

\u201cAnd then we should not be talking about mortgage rates. They should just sit there and we should get on with bloody growing this economy and getting cheerful for summer.\u201d<\/p>\n

Sign up to The Daily H<\/a>, a free newsletter curated by our editors and delivered straight to your inbox every weekday.<\/p>\n","protected":false},"excerpt":{"rendered":"Interest rates would only just begin flowing into the economy as people began to refix their mortgages, she…\n","protected":false},"author":2,"featured_media":66485,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[17311,74,1643,53669,138,6932,30609,3588,2245,219,246,3499,6722,32033,111,139,20484,69,5908,44625,38111,13420,19257,10665,13382,312,1305,8983,3755,25809,792,80],"class_list":["post-66484","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-17311","tag-after","tag-bank","tag-basis","tag-business","tag-cash","tag-corner","tag-cut","tag-early","tag-economy","tag-finance","tag-growth","tag-minister","tag-moved","tag-new-zealand","tag-newzealand","tag-nicola","tag-nz","tag-official","tag-points","tag-projections","tag-quarter","tag-rate","tag-reserve","tag-returning","tag-says","tag-show","tag-signals","tag-third","tag-turning","tag-willis","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/66484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=66484"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/66484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/66485"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=66484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=66484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=66484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}