New Zealand will enter prolonged recession

We already predicted that New Zealand would enter recession a month ago and the RBNZ’s determination to push the economy off a cliff to get inflation under control means the downturn will be even deeper than we had thought. And while there are some institutional differences that explain why the RBNZ is finding it harder to reduce price pressures, we’re sticking to our view that the RBA will lift rates more aggressively than most anticipate, too.