1 00:00:00,080 --> 00:00:00,760 Speaker 1: So fifty points. 2 00:00:00,760 --> 00:00:01,040 Speaker 2: It was. 3 00:00:01,080 --> 00:00:03,080 Speaker 1: The RB said it was a message or a signal 4 00:00:03,120 --> 00:00:05,400 Speaker 1: there could be more to come next month. Was yesterday 5 00:00:05,440 --> 00:00:08,200 Speaker 1: the circuit break of the economy needed. Chris Smaller's ABC 6 00:00:08,320 --> 00:00:11,840 Speaker 1: Business Sales CEO back well us, Chris, morning, Wriy, mikey 7 00:00:11,840 --> 00:00:14,000 Speaker 1: doing very well. Indeed you're walking a bit taller this morning. 8 00:00:14,000 --> 00:00:15,800 Speaker 1: Does the world seem like a different place to you? 9 00:00:16,640 --> 00:00:19,959 Speaker 2: Yeah? Absolutely, I think that yesterday was a slight shot 10 00:00:19,960 --> 00:00:22,760 Speaker 2: considering how conservative that group of people have been historically. 11 00:00:22,800 --> 00:00:26,520 Speaker 2: So my sort of feedback from business owners was very positive. 12 00:00:27,120 --> 00:00:29,960 Speaker 2: And remembering that majority of you know, small and medium 13 00:00:29,960 --> 00:00:32,800 Speaker 2: sized businesses and do have bank loans, and the majority 14 00:00:32,800 --> 00:00:34,919 Speaker 2: of those was the business loans are actually on floating, 15 00:00:35,400 --> 00:00:39,080 Speaker 2: so that means those impact savings from that decline and 16 00:00:39,120 --> 00:00:42,080 Speaker 2: the OCO will be immediately felt, which can only. 17 00:00:42,000 --> 00:00:44,480 Speaker 1: Be positive, fantastic. So how real has that been, because 18 00:00:44,479 --> 00:00:46,400 Speaker 1: that's been the political argument. You know, if you look 19 00:00:46,400 --> 00:00:48,600 Speaker 1: at the interest rates X number of months ago versus 20 00:00:48,600 --> 00:00:51,760 Speaker 1: interest rates now you're saving why number of dollars? If 21 00:00:51,800 --> 00:00:54,960 Speaker 1: that's real for a business owner. Has that helped during 22 00:00:55,000 --> 00:00:55,560 Speaker 1: this period? 23 00:00:56,840 --> 00:00:59,200 Speaker 2: Yep? Look, it certainly helped. I think more important than 24 00:00:59,200 --> 00:01:02,640 Speaker 2: that so yet the cash cash benefit is important, but 25 00:01:02,680 --> 00:01:04,920 Speaker 2: the more important thing is the mental lift that gives 26 00:01:04,920 --> 00:01:07,760 Speaker 2: a business owner. So he not only feels better about 27 00:01:07,800 --> 00:01:09,920 Speaker 2: his own business he saving interest costs, but it's also 28 00:01:10,400 --> 00:01:14,360 Speaker 2: you know, if to consumers, they start to feel a 29 00:01:14,360 --> 00:01:17,720 Speaker 2: lot more confident about making investment decisions because that consumer 30 00:01:18,200 --> 00:01:20,840 Speaker 2: eventually is going to drop off a fixed rate, move 31 00:01:20,880 --> 00:01:22,959 Speaker 2: down to a four percent rate from a six percent rate, 32 00:01:23,000 --> 00:01:25,480 Speaker 2: more discretionary income. Suddenly they want to know some of 33 00:01:25,520 --> 00:01:28,160 Speaker 2: their discretionary income increases and they're going to spend more. 34 00:01:28,360 --> 00:01:30,520 Speaker 2: So it's it's meant it's the mental state that it 35 00:01:30,560 --> 00:01:31,640 Speaker 2: gives the business exactly. 36 00:01:31,680 --> 00:01:33,399 Speaker 1: So how do you split those two things? Am I 37 00:01:33,440 --> 00:01:36,600 Speaker 1: feeling better because I'm paying less on my mortgage as 38 00:01:36,640 --> 00:01:39,000 Speaker 1: the business owner? Or was it really for me as 39 00:01:39,040 --> 00:01:41,920 Speaker 1: the business owner about the customer who feels better and 40 00:01:41,959 --> 00:01:43,240 Speaker 1: will come into my shop? 41 00:01:44,240 --> 00:01:46,399 Speaker 2: Definitely the latter. I mean, when you think about a business, 42 00:01:46,640 --> 00:01:50,600 Speaker 2: interest costs are really owning a small portion of someone's 43 00:01:51,000 --> 00:01:54,840 Speaker 2: actual business costs, and you're definitely that they want people 44 00:01:54,880 --> 00:01:56,680 Speaker 2: coming to this. If you ask a business own, do 45 00:01:56,680 --> 00:01:58,680 Speaker 2: you want a decline and cost and an increase in revenue, 46 00:01:58,720 --> 00:02:01,320 Speaker 2: they've got to increase in revenue the week, So that's 47 00:02:01,360 --> 00:02:02,400 Speaker 2: really the most important thing. 48 00:02:02,480 --> 00:02:04,280 Speaker 1: Does it make a lot of difference depending on whether 49 00:02:04,280 --> 00:02:07,080 Speaker 1: you export stuff or whether you're lying on a local. 50 00:02:08,320 --> 00:02:10,359 Speaker 2: Yes, well obviously if you're exploring stuff, you're not. You 51 00:02:10,400 --> 00:02:13,880 Speaker 2: know that you're talking about an overseas consumer. Was really 52 00:02:13,960 --> 00:02:17,120 Speaker 2: it's it's going to really help the business that's more 53 00:02:17,160 --> 00:02:19,120 Speaker 2: focused on a domestic consumer, because either ones are going 54 00:02:19,200 --> 00:02:23,480 Speaker 2: to benefit from the decline of mortgage rates. Having said that, though, 55 00:02:23,720 --> 00:02:28,799 Speaker 2: the indirect indirect arm result of the sacram generals also 56 00:02:28,800 --> 00:02:31,000 Speaker 2: a lower keV dollar, so that's going to help ouric 57 00:02:31,080 --> 00:02:33,280 Speaker 2: waters through. So it's a double sword, which is great. 58 00:02:33,360 --> 00:02:34,399 Speaker 1: Do you need more next month? 59 00:02:35,960 --> 00:02:37,200 Speaker 2: The more we can get, the better. I mean. My 60 00:02:37,520 --> 00:02:40,320 Speaker 2: worry is in six months we're out of bullots. It's 61 00:02:40,360 --> 00:02:42,720 Speaker 2: so we go again. Next month, we're down to two 62 00:02:42,800 --> 00:02:44,760 Speaker 2: twenty five, we go on fee, we go down to two, 63 00:02:44,800 --> 00:02:46,799 Speaker 2: and then you and I are talking this time next 64 00:02:46,919 --> 00:02:49,400 Speaker 2: next year and we're still going, why is the economy flat? 65 00:02:49,440 --> 00:02:52,560 Speaker 2: That's when we're a real worrying point, because we really 66 00:02:52,600 --> 00:02:54,000 Speaker 2: will be out of bullots. But I don't think that 67 00:02:54,040 --> 00:02:56,200 Speaker 2: will happen. I think we get down to two twenty 68 00:02:56,200 --> 00:02:59,440 Speaker 2: five or two. Call that neutral and we should have 69 00:02:59,639 --> 00:03:02,080 Speaker 2: home rand rates in the threes. It's a great position 70 00:03:02,080 --> 00:03:03,000 Speaker 2: to be in for New Zealand. 71 00:03:03,080 --> 00:03:07,800 Speaker 1: Merry Christmas Chris Small, whose ABC Business Sales CEO. For 72 00:03:07,919 --> 00:03:11,280 Speaker 1: more from the Mic Asking Breakfast, listen live to news talks. 73 00:03:11,320 --> 00:03:14,480 Speaker 1: It'd be from six am weekdays, or follow the podcast 74 00:03:14,520 --> 00:03:15,400 Speaker 1: on iHeartRadio.