The key drivers of inflation are on the supply side. Therefore, “demand management”, or a traditional Keynesian policy response, is not appropriate in such circumstances.
NZ may avoid a recession, according to the Reserve Bank's latest forecasts, but it will be a near-run thing and future growth looks lower than it was pre-covid.
If the economy was a car, this is the equivalent of your 'check engine' light blinking on. It's running too hot and too sluggishly, running the risk that overheated cylinders could jam shut.
A biometrics data breach or high-profile case of discrimination based on an inaccurate system could be devastating for a business.