Reserve Bank of New Zealand (RBNZ) Governor, Adrian Orr, told Thursday’s parliamentary Finance & Expenditure Committee (FEC) that the Bank was deliberately engineering a recession. Orr was asked what he thought about commentary on Wednesday’s 0.75% official cash rate (OCR) increase suggesting the RBNZ was deliberately engineering a recession. In the central projection, this recession is assumed to be spread over several quarters, although there is uncertainty about the timing”. The MPS also downgraded its projections for New Zealand house prices and is now tipping a peak to trough fall of around 20%:Although the speed and extent of the decline is highly uncertain, house prices are assumed to continue to fall towards more sustainable levels over the coming year. The central projection assumes that house prices will decline by 20% in total from the November 2021 peak.

Source: Stuff November 26, 2022 00:01 UTC