Reserve Bank forecasts a year-long recession as it tries to curb inflation

The Reserve Bank says inflation is no one's friend. (Image: Getty)

Wed, 23 Nov 2022

The Reserve Bank of New Zealand is forecasting a year-long recession as fast-rising interest rates take a bite out of demand. The central bank expects four quarters of negative growth starting in June 2023, when the economy contracts by 0.5%. “The peak to trough decline in the level of GDP [gross domestic product] is expected to be about 1%,” it said, noting uncertainty around the timing.The forecasts then show two quarters of flat growth in June 2024 and September 2024 and only start to see signs of economic growth in De...

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