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RBNZ and New Zealand Treasury At Odds Over Double-Dip Recession
New Zealand’s central bank and Treasury Department are at odds over whether the nation needs another recession to get inflation under control. The Treasury yesterday said the economy returned to growth in the second quarter and will continue to expand but that inflation will still retreat below 3% by the end of 2024. By contrast, the Reserve Bank last month predicted gross domestic product will shrink in the third and fourth quarters of this year, with Governor Adrian Orr saying that’s the “bare minimum” required to get inflation back into his 1-3% target band. Several bank economists agree the economy needs ... (full story)