Alarm bells are ringing, but is anybody listening?

The last thing this economy – and the outlook for hot inflation – needs is more spending or stimulus. (Image: Getty)

Thu, 20 Oct 2022

Alarm bells are ringing over the latest inflation figures, with inflation stubbornly above 7% and core inflation measures rising. We are going to take bigger hits to demand and see a deeper downturn unless we suck it up and start having real conversations and instigate policies to boost supply. That's going to require political ideology to be parked.The market response has been brutal, because investors expect the Reserve Bank of New Zealand will lift the Official Cash Rate (OCR) further and faster. A 75-basis points rise in the OCR is...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On The Money: Browns, beards, big cheeses, and more

Recognising the ‘basic little people’ and other little things OTM noticed this week.

Dileepa Fonseka 5:00am

World

The new scramble for Africa

The competition for influence will shape the continent’s future. Will the US join?

The Wall Street Journal 5:00am

Media Opinion

A 100% tariff on movies. What does that even mean?

"We should underestimate Trump at our own peril."

Bloomberg 5:00am

A 100% tariff on movies. What does that even mean?

Sponsored

Ready for the C-Suite leap?

Part-time programme. Full-time leadership transformation.

University of Auckland Business School

Sponsored

Active beats passive in tough times

Agile investing responds faster to market shocks and shifts.

Milford

More Economy

Economy

Westpac adds another rate cut to its forecasts

Westpac Bank now expects the official cash rate (OCR) to trough at 3% and has pushed back the timing of its forecast tightening cycle.“Downside risks from global growth suggest the RBNZ [Reserve Bank of New Zealand] may continue easing beyond May,” chief economist Kelly Eckhold s...

Rebecca Howard 09 May 2025