On Wednesday, the Reserve Bank of New Zealand (RBNZ) lifted the official cash rate (OCR) another 0.5% to 4.75%. Specifically, the RBNZ forecasts a “peak-to-trough decline in the level of GDP over 2023… [of] about 1 percent”. “While this recession is assumed to be spread over several quarters from the middle of this year, there is considerable uncertainty about the timing”, the SoMP notes. This decline in GDP will be driven by shrinking household consumption spending. A deep recession cannot be ruled-out.

Source: Stuff February 24, 2023 03:55 UTC