Tough times ahead for NZ economy: Nikko economist
Not only is NZ's major trading partner, China, in economic strife, “but there's a guy at the Reserve Bank who wanted to see if he could break the financial system,” Hunt said at an investment forum in Wellington hosted by Nikko Asset Management.
The central bank has raised its official cash rate (OCR) from 0.25% to 5.5% between October 2021 and now and the economy already officially went into a shallow recession in the December 2022 and March 2023 quarters.
In its latest monetary policy statement last month, RBNZ forecast a small amount of economic growth in the June quarter followed by declines in both the September and December quarters.
Hunt said the central bank's actions will have the desired effect.
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