New Zealand’s central bank Governor Adrian Orr said the nation’s economy needs a mild recession at the very least to slow activity before policymakers could consider reducing interest rates. “It’s the bare minimum we need to see because without doubt demand has been well outstripping the pace of the supply capacity” of the economy, Orr said in an interview with Bloomberg Television on Thursday in Wellington. “We need to see subdued consumer spending, business investment and government constraints on spending, these are a critical part of the inflation process.” The Reserve Bank on Wednesday held its Official Cash ... (full story)