Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson ahead of the Reserve Bank's upcoming Monetary Policy Statement

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Shane Solly: Harbour Asset Management spokesperson ahead of the Reserve Bank's upcoming Monetary Policy Statement · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks EDB follow
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  Speaker 2: Joining me now is Shane Solely from Harbor Asset Management.
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  Speaker 2: How are you, Shane on, I've got a fine chant.
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  Speaker 2: I've got it all the way to the top. Here
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  Speaker 2: here he is. That was my problem before, Shane, how
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  Speaker 2: are you?
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  Speaker 3: Yeah, well you're Francisco and really well yourself.
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  Speaker 2: Yeah, good, thank you. Apologies. I was it was in
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  Speaker 2: a text queue there and I missed you at the top.
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  Speaker 2: Now tell me. The Reserve Bank's next monetary policy statement
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  Speaker 2: is due on Wednesday and it's widely expected to keep
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  Speaker 2: the cash rate on hold.
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  Speaker 1: Is that right, that's.
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  Speaker 3: Right, that's right, that's right. And today we've had this
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  Speaker 3: injured a shadow board which is made up of nine
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  Speaker 3: private sector economists, business people, academics, and they come out
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  Speaker 3: and said, you know what this ghastline libit of slacking.
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  Speaker 3: The labor marketplace is falling back, but not enough in
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  Speaker 3: their opinion for the Reserve Bank and New Zealand to
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  Speaker 3: start cutting rates. But interesting, there's a couple bit of
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  Speaker 3: contention than in the group. There is several members thinking
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  Speaker 3: that early next year it needs to happen, and one
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  Speaker 3: board number actually said they should be cutting now. So
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  Speaker 3: we're getting closer, and I think interest rate markets are
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  Speaker 3: starting to think about it the members when most people
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  Speaker 3: in the market, I think about cuts, and if we
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  Speaker 3: look forward to July next year, about one percy that
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  Speaker 3: cuts baked. And so it's a little bit of tough
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  Speaker 3: times for borrowers to come. But getting near a turning point.
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  Speaker 2: Perhaps we have been well forewarned about that, though, haven't
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  Speaker 2: we shame? I mean, a lot of people are thinking
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  Speaker 2: it's going to be sort of early twenty twenty five even.
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  Speaker 3: Yeah, and that's right. And so what we're seeing globally
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  Speaker 3: is central banks getting to the end. They can see
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  Speaker 3: that the medicine of higher interest rates is working, but
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  Speaker 3: they just want to see it really get on top
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  Speaker 3: of inflation. And so I think if you're a central banker,
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  Speaker 3: you're going to wait. You're going to wait for things
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  Speaker 3: to get particularly the heat coming out of inflation. But
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  Speaker 3: the economy is really coming down hard. We all notice,
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  Speaker 3: we can see it, and that's going to what's lead
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  Speaker 3: is going to lead this cutting cycle.
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  Speaker 2: Do you think the bank might indicate a bit more
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  Speaker 2: regarding the timing event potential cut.
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  Speaker 3: Yeah, great question, Forester, because I think this is a
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  Speaker 3: thinking about thinking about where we might be thinking about
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  Speaker 3: thinking about cutting rates. That is something that is probably
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  Speaker 3: not necessarily baked in to capital markets, not into interestrate fullcast,
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  Speaker 3: and that's what we'll all be looking for as a
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  Speaker 3: vestas in the next few days. Is on Wednesdays, there's
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  Speaker 3: some Hey, we're thinking about it. We're starting to see
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  Speaker 3: the tighter interest rates. Restraint on availability didn't really start
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  Speaker 3: to hammer home.
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  Speaker 2: Contact Energy's share price took ahead today.
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  Speaker 3: What happened, Jane, Yeah, Look, Contact has been a great
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  Speaker 3: story from New Zealand and vests. They've done a good
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  Speaker 3: job of growing their generation capability of the literacy generation.
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  Speaker 3: But they come out today and cut their earnings for
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  Speaker 3: GUSS and it really comes down to a little bit
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  Speaker 3: of technical stuff around this new portfolio of particularly geoffrmal generation,
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  Speaker 3: just some slow down in terms of when the new
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  Speaker 3: generation geo thermal plant comes on. At the same time,
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  Speaker 3: they don't have access to the gas that used to
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  Speaker 3: be used to fill this generating requirements. So this said,
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  Speaker 3: we've got to go and buy electricity in the open market.
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  Speaker 3: It's going to cost us more because we don't have
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  Speaker 3: the GFM or plants. We've got some outages coming through
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  Speaker 3: and we just can't get excess to the gas, so
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  Speaker 3: they've trimmed. Thereforecas on earnings sort of a surprise. Haven't
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  Speaker 3: seen next a little while from contact. So yeah, ship
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  Speaker 3: price ended up down four percent today at eight dollars
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  Speaker 3: seventy eight, so give a surprise.
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  Speaker 2: Thank you so much, Shane, good to catch up with you.
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  Speaker 2: That was Shane Solely there from Harvard Asset Management.
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