November 25, 2022
Reserve Bank warns of recession
Finance Minister Grant Robertson has warned New Zealand is moving into tough times.
The Reserve Bank this week raised its official cash rate by 75 basis points to 4.25 percent on Wednesday as it struggles to contain inflation, and Governor Adrian Orr told parliament’s finance and expenditure select committee yesterday it was deliberately trying to slow spending – which could tip the economy into recession by the middle of next year.
The bank also predicted unemployment could be up to 5.7 percent in three years, compared with today’s 3.3 percent.
Mr Robertson says the bank’s job is to get inflation down, but the Government’s job is to support New Zealanders through this time and make the long term investments needed in public services.
Grant Robertson