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Speaker 1: Now Kaitland Packet Milfedesset Management is with us A Kitlin him,

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Speaker 1: I'm very well, thank you. Have the markets react to

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Speaker 1: the OCI.

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Speaker 2: Cut, Yeah, Look, interest rates across the curve, we saw

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Speaker 2: them move lower about point one percent or so on

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Speaker 2: the back of THEOCR cut today. But interest rates have

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Speaker 2: already moved significantly lower in the lead up to this meeting.

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Speaker 2: So you know, take the two year interest right to

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Speaker 2: swap right, that's a real bell weather from mortgage rights.

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Speaker 2: That was down close too percent over the past six

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Speaker 2: weeks leading into the meeting today, So we had already

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Speaker 2: seen you know, decent moves lower in interest rates. And

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Speaker 2: then we think about currency. If we think about the

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Speaker 2: New Zealand dollar now versus the Aussie dollar, you would

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Speaker 2: expect that it's going to be pretty strong given we

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Speaker 2: now have diverging monetary policies. So New Zealand has embarked

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Speaker 2: on this cutting cycle versus our neighbors and Aussie are

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Speaker 2: now remaining firmly on the hold as it is. But

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Speaker 2: I would expect that these market reactions that they will

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Speaker 2: likely extend over the next twelve twenty four hours as

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Speaker 2: offshore markets get involved in digest the cut today.

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Speaker 1: All right now on the market, we've got a lot

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Speaker 1: of interest rights sensitive companies and so I imagine this

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Speaker 1: would be a welcome relief to them.

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Speaker 2: Yeah, yeah, definitely. So you know, in particular, property company,

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Speaker 2: retirement villages, retailers, their serprise, their movement, in their surprise,

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Speaker 2: they're all seeing the benefit of that cut. Today we

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Speaker 2: really saw in particular names that were quite beaten up

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Speaker 2: going for the duration of this year and pretty unloved,

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Speaker 2: we saw them come back into favor. So names like

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Speaker 2: key Weet Property Group end of the day up about

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Speaker 2: five and a half per sound Catman dou of about

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Speaker 2: seven percent, and that was going in comparison to the

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Speaker 2: overall New Zealand share market, which end of the day

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Speaker 2: up about a percent and a half. So good performance

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Speaker 2: from those right sensitive companies and taking back a bit

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Speaker 2: of the underperformance that we'd already seen today.

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Speaker 1: So the fact that we're cutting rights already and that

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Speaker 1: they're the forecast is that these right cats will keep

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Speaker 1: on coming. Do you think this is going to cushion

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Speaker 1: the blow to the economy.

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Speaker 2: Yeah, Look, it's it's something that only time would tell.

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Speaker 2: The Governor orders said today that were likely in the

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Speaker 2: darkest period right now. So you know, granted we have

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Speaker 2: had technical recessions, but ultimately for the most part and

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Speaker 2: in terms of the hard data that we get, we

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Speaker 2: have avoided that hard banding with everything coming crashing down

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Speaker 2: at once. But our data is lagging in terms of

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Speaker 2: you know, GDP, unemployment and inflation and risks really are

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Speaker 2: pointing towards worsening the economies and pressures are really mounting.

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Speaker 2: You know, we know unemployment is climbing, growth is negative

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Speaker 2: and it's likely to remain. So the housing markets muted,

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Speaker 2: and we've migration falling with the mass exodus of Kiwis

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Speaker 2: to Uzzi. So you know, even if we look externally,

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Speaker 2: the US is flowing and China is pretty as we

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Speaker 2: looked in to start stimulating its economy. So there is

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Speaker 2: a real chance that the Urbians that you know, we

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Speaker 2: were the first to hike, they could be too late

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Speaker 2: starting to cut today and we could already have a

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Speaker 2: lot of damage done to the economy. But you know, unfortunately,

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Speaker 2: only time is going to tell.

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Speaker 1: Yeah, hy Kaitlin, thanks for running us through that, man,

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Speaker 1: I really appreciate it. As Kaitlin Pack and milfed Esset Management.

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