Latest / Best of Business / Adrienne Begbie: Prospa Managing Director on the impact of the latest OCR cut

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Adrienne Begbie: Prospa Managing Director on the impact of the latest OCR cut · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from news Talk zed B.
• 0:12
  Speaker 1: Follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: So to Christian and has a bunch of Mary Travelers
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  Speaker 2: who delivered more interesting news than we thought. Yes, twenty
• 0:20
  Speaker 2: five points, but for the first time you have a
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  Speaker 2: four to two vote. More importantly, they missed the Q
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  Speaker 2: two contraction and as a result we're most likely to
• 0:26
  Speaker 2: get two more cuts before Christmas. Adrian big B is
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  Speaker 2: the MD of lending company prosper Enders with US Adrian.
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  Speaker 3: Good morning, Good morning mate.
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  Speaker 2: Did you get a lot of confidence out of them
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  Speaker 2: yesterday or not? Oh?
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  Speaker 3: I understand. I think everyone was expecting the twenty five points.
• 0:40
  Speaker 3: Some people were hoping I'm fifty, but twenty five points
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  Speaker 3: will do for now. It does help a lot. Do
• 0:46
  Speaker 3: you know that our New Zealand interest rates we were
• 0:48
  Speaker 3: forty seven percent higher at the peak of the increase
• 0:52
  Speaker 3: in the rates than we were pre COVID. It's a
• 0:54
  Speaker 3: huge amount out of people's pockets. It's a huge amount
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  Speaker 3: of people to be able to spend and go out
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  Speaker 3: and to help the economy.
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  Speaker 2: Exactly what why are we in a funk?
• 1:02
  Speaker 3: Why are we in a funk? It's interesting, isn't it.
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  Speaker 3: I listened to your shell all the time, so I
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  Speaker 3: loved luxm quote the other day actually when you were
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  Speaker 3: talking to them about turning the ship around or getting
• 1:10
  Speaker 3: the getting the car out of a ditch, and turning
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  Speaker 3: the economy around. So that takes a long time. The
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  Speaker 3: economy stall. So that comes out of we come out
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  Speaker 3: of the recession, we come out of COVID, and that
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  Speaker 3: this impacts everyone's pocket The rates go out, the people's
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  Speaker 3: value in their houses go down, so that impacts confidence.
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  Speaker 3: Confidence drives so much in the economy.
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  Speaker 2: Do people want money at the moment? Is there a
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  Speaker 2: sense of eye can take a risk or not?
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  Speaker 3: When it comes to business lending and starting, we see
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  Speaker 3: it in our data. So we are kind of the
• 1:42
  Speaker 3: canary in the mind because we are leading to the
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  Speaker 3: small businesses. So when we're lending too small businesses, the
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  Speaker 3: key data point that I watch is the approval to settlement,
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  Speaker 3: so that shows that businesses are actually confident to take
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  Speaker 3: the money. So the confidence take the money and the
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  Speaker 3: use of funds as well, So we watch the use
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  Speaker 3: of funds. The thing that was really interesting with when
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  Speaker 3: the budget come out with that investment boost that they
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  Speaker 3: came out with. So we saw an initial intake of
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  Speaker 3: people taking money to invest in their businesses. So that
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  Speaker 3: has continued. But as the confidence is returning and people
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  Speaker 3: have money to spend, that helps them to get more
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  Speaker 3: confidence to be able to invest in their business. So
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  Speaker 3: we've seen that in our data now good.
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  Speaker 2: So what Christian said yesterday broadly, as things are ish
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  Speaker 2: coming right, they will continue to come right. By twenty
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  Speaker 2: twenty six, he sees some form of normality. You would
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  Speaker 2: agree with that, yes, yes, we would.
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  Speaker 3: Everyone was hoping that, you know, you get to thrive,
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  Speaker 3: to survive to twenty five or then thrive in twenty five,
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  Speaker 3: but people are looking forward to twenty six. So I
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  Speaker 3: think getting through the end of this year, there's still
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  Speaker 3: a lot of pain out there. That's still some tough,
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  Speaker 3: tough things to do, but it is improving. And when
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  Speaker 3: you see that those data points to start to improve,
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  Speaker 3: then that gives my business confidence as well as our
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  Speaker 3: customers to be able to move forward and to really
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  Speaker 3: start growing good stuff.
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  Speaker 2: I Adriam apprecict time very much. Adrian Bigbie, who's the
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  Speaker 2: managing director of pros for Morning Mike Our Homeland, is
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  Speaker 2: currently on floating any advice on when to fix and
• 3:02
  Speaker 2: how long. Yes, I do stand
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