December has arrived, and with it comes the realisation for many that Christmas is right around the corner.
While this is normally a time of year when we all flock to the shops and various sales, the cost-of-living crisis and inflation concerns mean that we are unlikely to see the same rush on shopping malls that we have in years past.
Last week, the Reserve Bank increased the Official Cash Rate to 4.25 per cent, its highest level since 2008. In his speech making the announcement, Reserve Bank Governor Adrian Orr made pointed remarks that New Zealanders need to decrease spending to help get inflation under control.
“New Zealand to date, household spending has remained very resilient. However, aggregate demand continues to outstrip New Zealand’s capacity to supply goods and services. So subsequently, the committee members agreed that monetary conditions need to tighten further, so as to be confident that we have sufficient restraint on spending to bring inflation back to that 1 and 3 per cent target range.”
