And New Zealand Interest rates come down yet again.

March 12, 2009 by
Filed under: General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ, Retirement, Pensions and Kiwisaver 

Alan Bollard (bless his little cotton socks) has dropped the official cash rate in New Zealand to 3%. A bit of a wet blanket, this one, as he only dropped it 0.5%. He now claims that we are about to reach the bottom of the recession, and so we shouldn’t hope for too many more drops. Hmmm – I guess we are expected to trust the man.He also says the economy should pick up after the middle of the year.

The thing is – people are so scared – I’m not sure that is going to happen. The problem with many economists is they tie their heads up so much with numbers: interest rates; exchange rates; GDP; imports and exports – that they forget that no one has any money to buy things with. People, and the way we think, just get forgotten at the bottom of the pile while the top dogs wring their hands together telling us what we should think.

Last year – Bollard was telling us all to stop spending money. And we listened. And the economy of New Zealand came to grinding halt. Now – he wants us to start spending again!

Why should we make the decision on how much money we should spend or save based on what Alan Bollard thinks? (This applies to anyone who is saying what we should do in the current “crisis” – Mr Bollard just happens to be my own pet peeve).

Any decisions on what you spend your money on should be based on whether you and your family can afford it. How you handle your money in times like these should actually be exactly the same as in any other time:

    Spend less that you earn
    Save a percentage of any earnings for yourself and your future.
    Don’t buy things on Credit that you cannot afford.
    Don’t have credit card debt.
    Get rid of any bad debts.

Related posts:

  1. What’s happening with NZ interest rates?
  2. Why exactly should interest rates in New Zealand go up?
  3. Will New Zealand’s interest rates fall again this week?
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Comments

5 Comments on And New Zealand Interest rates come down yet again.

  1. » And New Zealand Interest rates come down yet again. on Thu, 12th Mar 2009 2:01 pm

    2. [...] fixmyloans wrote an interesting post today onHere’s a quick excerptAlan Bollard (bless his little cotton socks) has dropped the official cash rate in New Zealand to 3%. A bit of a wet blanket, this one, as he only dropped it 0.5%. He now claims that we are about to reach the bottom of the recession, and so we shouldn’t hope for too many more drops. Hmmm – I guess we are expected to trust the man.He also says the economy should pick up after the middle of the year.The thing is – people are so scared – I’m not sure that is going to happen. The problem with many e [...]

  2. Aaron Wakling on Thu, 12th Mar 2009 1:15 pm

    3. I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

  3. Interest Rates » And New Zealand Interest rates come down yet again. | Avalon's Blog on Thu, 12th Mar 2009 2:37 pm

    4. [...] Read the rest of this great post here [...]

  4. admin on Sat, 14th Mar 2009 8:42 pm

    5. Thank you very much Aaron. I really appreciate that :)

  5. RIMM: Broadpoint.Amtech Cuts Estimates; Stock Slips [Voices] | Hobby Cash: Make Cash Blogging About the Things You Love on Thu, 19th Mar 2009 5:45 am

    6. [...] And New Zealand Interest rates come down yet again. | Avalon's Blog [...]

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