A week ago, the Bank of New Zealand (BNZ) forecast the economy would enter a recession next year that could be deeper than anticipated. This prediction came after ANZ’s June business survey “was littered with indicators that fit with our view that the economy is headed into recession”, according to BNZ head of research Stephen Toplis. “If anything, they suggest any such recession might be deeper than we have pencilled in”, he added. This presents a toxic cocktail for the Ardern Government as it seeks to secure a third term at the general election in September 2023. The way the economic cards are falling, Jacinda Ardern’s electoral fate looks sealed with a loss, due in no small part to the Reserve Bank’s aggressive monetary tightening.

Source: Stuff July 08, 2022 09:00 UTC