Newsletter – January 2025

The Reserve Bank of New Zealand is getting tough on inflation. The relationship between interest rates and inflation and what this means for your investments.

Our theme this month is interest rates. After the highest interest rates since 2008, the Official Cash Rate (OCR) was cut in August, marking the first cut since 2020. In this newsletter we outline what lower interest rates mean for your portfolio.

This month our theme is why things still feel sluggish despite indicators suggesting that the NZ economy is entering the early stages of recovery.

Our theme this month is Trump vs Harris – what the different parties are offering and how the US Presidential election may affect the markets.

Our theme this month is diversification. Diversifying investments can mitigate risk by balancing the ups and downs of individual shares, and individual countries to reduce their impact on your entire portfolio. A diversified portfolio is more resilient because it’s designed to capture growth while providing relative security during market downturns.

This month our theme is ‘a change in direction for interest rates’. We take a quick look at what the RBNZ and OCR do, why the OCR has increased, and what this change could mean for households and businesses.