Summary: The OECD warned this morning the New Zealand economy is showing signs of overheating and it repeated advice a later retirement age is needed to keep public debt down in the long run. Elsewhere, financial markets are focused on this afternoon’s rates decision and guidance from the Reserve Bank of Australia.

OECD advice The OECD has just released its biennial economic survey of New Zealand, including advice about structural and tax reform designed to keep debt down and maximise wellbeing. It again recommended an extension of the age of eligibility beyond 65 to reduce the future burden of pensions and a likely rise in long-term public debt without policy changes.

‘Retire later’ The OECD said New Zealand’s recovery from initial covid shocks had been “rapid and strong and the economy is showing signs of overheating”. It noted only a slow increase in the Government’s structural budget balance that would require policy change in the years to come. “In the longer run, population ageing will substantially increase budget deficits and debt on unchanged policies,” it said.

‘Hit me now’ Almost half (47%) of people polled by 1News/Kantar said this month they wanted house prices to fall “a lot” while a further 29% said they wanted them to fall “a little” while 18% wanted no fall. The poll result was released last night.

Vlad’s mates targeted The US and UK threatened financial and other sanctions on Vladimir Putin’s family and close circle of fellow Russian oligarchs that they said would cut them off from the international financial system and stop them parking money in West or sending their kids to top Western universities (Reuters)

Australian rates guidance Financial markets on both sides of the Tasman will keep a close eye on the Reserve Bank of Australia’s monetary policy decision due at 4:30 pm NZ Time. Economists expect the RBA to bring forward its expectations about its first rate hike from late next year to late this year in response to growing inflationary pressures. 

Fresh on BusinessDesk this morning

David McKenzie reports on how slowly airlines are moving to sustainability.

Jenny Ruth reports on how Ryman Healthcare handled covid outbreaks in its Melbourne rest homes.

Ian Llewellyn and Oliver Lewis preview a big decision on the massive Lake Onslow hydro-battery project that is due in May.

Paul McBeth takes a closer look on the MBIE review of the CCCFA changes.