1 00:00:00,000 --> 00:00:02,160 Speaker 1: It looks like one and done. The door technically remains 2 00:00:02,160 --> 00:00:04,160 Speaker 1: open for another cup. At the twenty five of yesterday 3 00:00:04,160 --> 00:00:06,439 Speaker 1: from the Reserve Bank is well, it has a finality 4 00:00:06,480 --> 00:00:08,320 Speaker 1: about it, doesn't it? The governor shortly, of course. But 5 00:00:08,400 --> 00:00:11,600 Speaker 1: first at retail level, are the banks moving? Steve Yukovic 6 00:00:11,720 --> 00:00:13,600 Speaker 1: is the CEO, of course of Kiwi Banking is back 7 00:00:13,640 --> 00:00:17,320 Speaker 1: with the Steve, very good morning to you. Co Operative 8 00:00:17,320 --> 00:00:19,120 Speaker 1: Bank is making a big deal of their three point 9 00:00:19,200 --> 00:00:21,799 Speaker 1: one on floating. Is everyone moving and moving to the 10 00:00:21,840 --> 00:00:22,960 Speaker 1: appropriate measure? 11 00:00:24,320 --> 00:00:26,279 Speaker 2: Well, I think you appropriates in the eye of the beholder, 12 00:00:26,320 --> 00:00:29,159 Speaker 2: but the everyone is moving. I think you've got to 13 00:00:29,200 --> 00:00:32,280 Speaker 2: also be aware that those moves will also impact savers 14 00:00:32,320 --> 00:00:35,600 Speaker 2: as well. Might but I think most people have shown 15 00:00:35,640 --> 00:00:38,280 Speaker 2: some activity yesterday. There'll be some unfolding today, I'm sure. 16 00:00:38,479 --> 00:00:41,400 Speaker 1: Do you think that people were waiting for some sort 17 00:00:41,440 --> 00:00:44,280 Speaker 1: of signal that we were done and now they'll start 18 00:00:44,320 --> 00:00:45,800 Speaker 1: making some decisions around money? 19 00:00:46,680 --> 00:00:49,519 Speaker 2: Jeez, I hope. So we've had nine cats now, haven't we, 20 00:00:49,600 --> 00:00:52,519 Speaker 2: And so lots of talk about green shoots that you know, 21 00:00:52,600 --> 00:00:55,680 Speaker 2: I suppose understand anybody. Those green shoots are namely in grass, 22 00:00:55,680 --> 00:00:58,880 Speaker 2: which is turned into meat and dairy but I mean 23 00:00:58,920 --> 00:01:01,800 Speaker 2: the market pricing is showing that this is very near 24 00:01:01,840 --> 00:01:04,160 Speaker 2: the bottom, if not the bottom. And there's a famous 25 00:01:04,160 --> 00:01:05,839 Speaker 2: saying that they don't ring the ball at the bottom, 26 00:01:05,880 --> 00:01:08,360 Speaker 2: all the top, so you know, all the market says 27 00:01:08,360 --> 00:01:10,959 Speaker 2: that this is very close or is the bottom? Okay? 28 00:01:11,080 --> 00:01:13,679 Speaker 1: One of the committee members yesterday in the press conference 29 00:01:13,680 --> 00:01:15,800 Speaker 1: suggested there's plenty of money out there to be borrowed. 30 00:01:15,880 --> 00:01:18,200 Speaker 1: Is there there's no shortage of equity? 31 00:01:19,200 --> 00:01:21,120 Speaker 2: No, there's not. I think there is plenty of money 32 00:01:21,120 --> 00:01:22,760 Speaker 2: that wants to be put to work. I think there's 33 00:01:22,760 --> 00:01:25,000 Speaker 2: a lot more private capital as well. You know, people 34 00:01:25,760 --> 00:01:28,760 Speaker 2: looking around the world trying to find attractive returns, and 35 00:01:28,800 --> 00:01:31,280 Speaker 2: that rates in New Zealand are still relatively attractive to 36 00:01:31,319 --> 00:01:32,240 Speaker 2: some places. 37 00:01:33,000 --> 00:01:35,759 Speaker 1: They talked yesterday too about the banks, the retail bank's 38 00:01:35,840 --> 00:01:38,000 Speaker 1: margins back to being where they were. The inference, I 39 00:01:38,040 --> 00:01:40,440 Speaker 1: think was that you guys are creaming at a little bit, 40 00:01:40,480 --> 00:01:42,120 Speaker 1: are you well? 41 00:01:42,120 --> 00:01:45,160 Speaker 2: Ours is flat, so we definitely aren't. But I think 42 00:01:45,400 --> 00:01:47,840 Speaker 2: that's a good question for everyone when they look around 43 00:01:47,880 --> 00:01:51,240 Speaker 2: to say are the returns appropriate? You know, we've had 44 00:01:51,240 --> 00:01:54,600 Speaker 2: a pretty good crack at one and Finance and Expenditure 45 00:01:54,600 --> 00:01:57,680 Speaker 2: Committee to say and argue that the present capital rules 46 00:01:57,720 --> 00:01:59,960 Speaker 2: mean that the Aussie owned banks make about three quarters 47 00:02:00,040 --> 00:02:02,640 Speaker 2: of billion dollars more than they should if the rules 48 00:02:02,680 --> 00:02:04,320 Speaker 2: were changed. So we're hoping we're going to get an 49 00:02:04,360 --> 00:02:06,840 Speaker 2: update on that. On the eleventh of December. 50 00:02:06,560 --> 00:02:09,040 Speaker 1: When you said, jeez, I hope. So what what's your 51 00:02:09,160 --> 00:02:11,640 Speaker 1: view of the power of cuts, because those guys have 52 00:02:11,680 --> 00:02:15,400 Speaker 1: talked for an entire year about the so called flow 53 00:02:15,560 --> 00:02:17,720 Speaker 1: through to the economy and it hasn't happened, or if 54 00:02:17,760 --> 00:02:18,920 Speaker 1: it has, it's made no difference. 55 00:02:19,760 --> 00:02:21,520 Speaker 2: Now I'm with you on that front. I think it's 56 00:02:21,639 --> 00:02:24,519 Speaker 2: up to each individual person to feel like they're confident 57 00:02:24,600 --> 00:02:26,880 Speaker 2: about that they're ready to go. I mean, there is 58 00:02:26,960 --> 00:02:29,480 Speaker 2: absolutely no doubt in my mind that the wealth effect, 59 00:02:29,600 --> 00:02:32,720 Speaker 2: which comes from seeing your home go up and price, 60 00:02:32,800 --> 00:02:35,840 Speaker 2: makes a big difference. I think, you know, we have 61 00:02:35,880 --> 00:02:37,880 Speaker 2: to see a bit more activity in that residential home 62 00:02:37,919 --> 00:02:40,600 Speaker 2: market that helps. We've got a lot of businesses that 63 00:02:40,639 --> 00:02:43,280 Speaker 2: have been sitting on their hands, you know, they're hiring intentions, 64 00:02:43,320 --> 00:02:47,040 Speaker 2: their investment intentions have been really, you know, pretty loop warm. 65 00:02:47,120 --> 00:02:50,480 Speaker 2: I'm really hoping that through the next three to six months, 66 00:02:50,720 --> 00:02:53,839 Speaker 2: people make that individual decision, which is Fay it's time 67 00:02:53,919 --> 00:02:56,600 Speaker 2: to invest and stop the lying on a small bunch 68 00:02:56,600 --> 00:02:57,400 Speaker 2: of people in Wellington. 69 00:02:57,600 --> 00:03:00,400 Speaker 1: You sound trepidacious about twenty six. Is that fair as 70 00:03:00,440 --> 00:03:01,120 Speaker 1: opposed to balls? 71 00:03:02,120 --> 00:03:04,799 Speaker 2: Na No, I feel like you know, this has got 72 00:03:04,800 --> 00:03:07,920 Speaker 2: to be the bottom and so as a result of this, 73 00:03:08,280 --> 00:03:11,520 Speaker 2: I do believe that business owners and individuals don't want 74 00:03:11,520 --> 00:03:13,680 Speaker 2: to sit around on their hands forever. They've done a 75 00:03:13,680 --> 00:03:16,480 Speaker 2: good job of paying their bills. Things like rates and 76 00:03:16,560 --> 00:03:19,160 Speaker 2: insurance have been hardgoing. Hopefully we see a bit of 77 00:03:19,200 --> 00:03:21,239 Speaker 2: relief on those fronts as well in twenty six and 78 00:03:21,919 --> 00:03:23,440 Speaker 2: then at the end of the day, people have got 79 00:03:23,440 --> 00:03:25,160 Speaker 2: to grow if they want to have a better retirement, 80 00:03:25,200 --> 00:03:26,520 Speaker 2: so let's get investing. 81 00:03:26,639 --> 00:03:29,160 Speaker 1: Good stuff. Well done. Steve Yeakovic is the boss of 82 00:03:29,200 --> 00:03:29,720 Speaker 1: kV Bank. 83 00:03:29,720 --> 00:03:30,080 Speaker 2: Of course. 84 00:03:30,440 --> 00:03:33,320 Speaker 1: For more from The Mic Asking Breakfast, listen live to 85 00:03:33,440 --> 00:03:36,520 Speaker 1: news talks that'd be from six am weekdays, or follow 86 00:03:36,560 --> 00:03:38,080 Speaker 1: the podcast on iHeartRadio.