NZ faces 'shallow' recession as rates need to rise more - senior central banker

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NZ faces 'shallow' recession as rates need to rise more - senior central banker
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New Zealand is likely facing a 'shallow' recession as interest rates need to rise further to tame inflation, a top central banker said on Monday, suggesting that a pause in the policy tightening streak was still a distant prospect.

A New Zealand Dollar note is seen in this picture illustration June 2, 2017. REUTERS/Thomas White/Illustration/File Photo

Markets are leaning toward another hike of 75 basis points in February, and have fully priced in a peak of 5.5% by July next year. "It does not compare to the likes of the slowdown that we saw in the GFC or even in the 1991 recession," Silk added. Tourism has also been surprisingly strong in recent months and was expected to continue over New Zealand's summer.

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