Box – Case study – Household saving rate10 Measurement is difficult in times of change. In the early 2000s there was a rapid increase in the number of New Zealand households using trusts to manage household finances. The use of trusts impacted quite significantly on the data sources used to estimate New Zealand’s household saving rate.
Given this reality, decision makers in all sectors (SMEs, large corporates, households, the government) should make financial plans on a prudent basis, with sufficient equity and cash buffers to cope with adverse shocks and due risk assessment of investment and consumption plans. Finally, let me turn to the consumer protection work of the Central Bank, which extends to the SME sector.