Market & Portfolio Update – October 2024
The Reserve Bank of New Zealand reduced the Official Cash Rate from 5.25% to 4.75% in October. While an interest rate cut was widely expected, the extent of the cut was being debated leading up to the announcement. The Reserve Bank felt inflation was comfortably converging to the midpoint of their 1-3% inflation target and decided on a 0.50% interest rate cut. The market was relatively pleased with the size of this cut, helping the NZX50 finish the month up a modest +1.7%.
The global share market had a positive month, up +1.6%. The US market had a flat month, with investors preparing themselves for the US election. While the election result isn’t expected to impact markets in the long term, certain industries directly impacted by different policies are expected to portray short-term movement depending on the election result.
Australia reported inflation of 2.8%, with the market expecting interest rates to remain steady at 4.35% for a while as the Reserve Bank still wants to see significant progress on their underlying inflation.
Money & Mental Health - Let's Talk About The Link
Over half of New Zealanders say financial stress has impacted their wellbeing. That’s not just a statistic. It’s a signal. It means many of us are quietly worrying about our financial future, unsure who to turn to or where to start.
At Lifetime, we know financial advice is about more than dollars and cents. It’s about reducing worry, building confidence, and helping you feel more in control, both emotionally and financially.