New Zealand is heading for a likely recession, after the largest increase to the official cash rate on record.
The Reserve Bank yesterday raised its official cash rate by 75 basis points to 4-point-25 percent, the biggest single rise in its history and the highest level since December 2008.
The Central Bank says mortgage rates could rise to 8 percent.
It says the recession is the necessary price the economy has to pay to get inflation under control and New Zealanders should save not spend.
So how deep will this recession be, for how long, and who will feel it worst? Infometrics principal economist Brad Olsen.