Bad news for the economy and bad news for those holding out hope for lower interest rates.

Economic consultancy Infometrics says while the economy has probably been in recession since late last year, there's very little evidence inflationary pressures are starting to ease.

It's now forecasting the Reserve Bank will need to lift the Official Cash Rate to 5.75 percent.

Chief Forecaster Gareth Kiernan told Tim Dower the inflation cycle will be much harder to beat than previously expected.

LISTEN ABOVE

Bad news for the economy and bad news for those holding out hope for lower interest rates.
Economic consultancy Infometrics says while the economy has probably been in recession since late last year, there's very little evidence inflationary pressures are starting to ease.
It's now forecasting the Reserve Bank will need to lift the Official Cash Rate to 5.75 percent.
Chief Forecaster Gareth Kiernan told Tim Dower the inflation cycle will be much harder to beat than previously expected.
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.