The looming recession could cut deeper than previously thought.

ASB is now forecasting the economy will shrink by about two-percent by early next year, double the contraction it was forecasting three months ago.

Former Reserve Bank economist Michael Reddell says its a plausible prediction.

He told Tim Dower every time the Reserve Bank tries to significantly reduce inflation, it's a recipe for recession.

Reddell says every time inflation has been brought down so quickly in the past, it's led to a recession, usually a severe one.

LISTEN ABOVE

The looming recession could cut deeper than previously thought.
ASB is now forecasting the economy will shrink by about two-percent by early next year, double the contraction it was forecasting three months ago.
Former Reserve Bank economist Michael Reddell says its a plausible prediction.
He told Tim Dower every time the Reserve Bank tries to significantly reduce inflation, it's a recipe for recession.
Reddell says every time inflation has been brought down so quickly in the past, it's led to a recession, usually a severe one.
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.

Best of Business

Michael Reddell: Former RBNZ economist says when the RBNZ tries to significantly reduce inflation, it's a recipe for recession

Hallenstein Glasson is reporting a boost in earnings, with net profit up in the full year ended August.

The retail giant posted a net profit of $59.2 million, up from $39.5 million a year ago.

Generate investment specialist Greg Smith says the brand's doing well in Australia, but the data shows Kiwi shoppers are also contributing to the growth.

LISTEN ABOVE

Hallenstein Glasson is reporting a boost in earnings, with net profit up in the full year ended August.
The retail giant posted a net profit of $59.2 million, up from $39.5 million a year ago.
Generate investment specialist Greg Smith says the brand's doing well in Australia, but the data shows Kiwi shoppers are also contributing to the growth.
LISTEN ABOVE

Greg Smith: Generate investment specialist on Hallenstein Glasson reporting boost in earnings

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/35a78831-b4fa-4041-9fc7-b4d40073f460/transcript

Labour's Finance spokesperson won't commit to delivering a surplus by 2029/30 if it's at the expense of restoring pay equity. 

Barbara Edmonds says she is confident Labour could deliver both. 

"For example, a choice that we would not make is $300 million for a tobacco excise tax cut." 

Labour will release its fiscal plan in coming weeks. 

LISTEN ABOVE

Labour's Finance spokesperson won't commit to delivering a surplus by 2029/30 if it's at the expense of restoring pay equity.&nbsp;
Barbara Edmonds says she is confident Labour could deliver both.&nbsp;
"For example, a choice that we would not make is $300 million for a tobacco excise tax cut."&nbsp;
Labour will release its fiscal plan in coming weeks.&nbsp;
LISTEN ABOVE

Barbara Edmonds: Labour's Finance spokesperson on Labour's plan to return the books to surplus

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/040e266c-1918-4612-9e95-b4d40064e28d/transcript

National's Nicola Willis is putting the rosier Government books - unveiled today - down to Kiwis' hard work, but won't say whether they'll be repaid a dividend in the form of tax cuts. 

Forecasts predict the next two years' deficits will be much smaller, and the 2028/29 surplus nearly $2 billion larger than earlier expected. 

But much of that improvement is down to income-tax bracket creep, and more revenue from GST and company tax. 

Willis says her focus is getting debt down, to buffer against any future shock.

"Those are National's budget responsibility rules - we have to deliver on those before we start dishing out the dividend." 

LISTEN ABOVE

National's Nicola Willis is putting the rosier Government books - unveiled today - down to Kiwis' hard work, but won't say whether they'll be repaid a dividend in the form of tax cuts.&nbsp;
Forecasts predict the next two years' deficits will be much smaller, and the 2028/29 surplus nearly $2 billion larger than earlier expected.&nbsp;
But much of that improvement is down to income-tax bracket creep, and more revenue from GST and company tax.&nbsp;
Willis says her focus is getting debt down, to buffer against any future shock.
"Those are National's budget responsibility rules - we have to deliver on those before we start dishing out the dividend."&nbsp;
LISTEN ABOVE

Nicola Willis: Finance Minister on the pre-election opening of the Government books

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/24f30bd8-593b-4f6a-a5d5-b4d400539e77/transcript

Michael Reddell: Former RBNZ economist says when the RBNZ tries to significantly reduce inflation, it's a recipe for recession

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