CPA Australia welcomes RBNZ’s 50 bp cut; calls for digital support to revive NZ small-business growth

One of the world’s largest accounting bodies, CPA Australia, welcomes today’s decision by the Reserve Bank of New Zealand (RBNZ) to slash the Official Cash Rate (OCR) by 50 basis points to 2.5 per cent. 

CPA Australia continues to call for structural reforms to maximise the impact of rates to boost small business performance.  

“CPA Australia welcomes today’s OCR reduction to ease immediate financial pressure on New Zealand’s small businesses ahead of the critical summer trading period,” said Rick Jones, CPA Australia’s Regional Head.

“This decision aligns with what our members have been seeing on the ground. Many small-business clients needed immediate cost relief to stabilise cash flow and maintain confidence heading into the final quarter of the year, even as deeper productivity challenges persist.”

Beyond rate relief, CPA Australia is calling on the Government to address New Zealand’s technology-adoption challenge.

Analysis from CPA Australia’s 2024-2025 Asia-Pacific Small Business Survey shows New Zealand businesses rank among the lowest performers regionally in online revenue generation, and only 22 per cent reported profitability gains from technology investment.

“Rate cuts will help businesses manage costs, while complementary policy can unlock productivity improvements,” Mr Jones said.

“Budget 2025’s Investment Boost has helped to address capital-equipment needs, and targeted support for digital capabilities would help small businesses adopt the e-commerce systems, cloud services and business software that drive day-to-day profitability – complementing the Investment Boost’s focus on physical assets.”

While today’s OCR decision provides short-term relief, the critical opportunity is to address long-term competitiveness through targeted digital support.

“To help New Zealand’s small businesses reach their full potential, we must support them to innovate, adopt technologies and build resilience. Lower interest rates ease immediate pressure, but digital-capability investment will secure long-term competitiveness,” Mr Jones said.