Economic Commentary
15 August 2024
Another eventful quarter has resulted in generally solid results for the three months to the end of July.
Wholesale interest rates have continued to decline as inflation figures move closer to long-run targets of around 2%, and this has buoyed markets. From the middle of July, we have started to see a gradually rotation in sharemarkets with investors beginning to move from an overconcentration in US technology companies to a broader view. Since the beginning of August there have been dramatic developments with a sharp market decline followed by an equally quick bounce back, and the NZ Reserve Bank somewhat unexpectedly cutting the Official Cash Rate. For those with a passion for investment and economics, it has been a fascinating period!
