Economist Cameron Bagrie worries that the momentum in government spending growth is a juggernaut without brakes.
The Reserve Bank of NZ now expects the official cash rate to peak at 3.9% in June 2023, up from its February view that it would peak at 3.4% in September 2024.
The central bank sees the OCR peaking at 3.9% in June 2023 but then easing back to 3.5%
Retail sales volumes fell a seasonally adjusted 0.5% in the first quarter, Statistics NZ said.