The dreaded 'R' word

Recession ‘may be unavoidable’, says BNZ – 14 Mar 2008 – NZ Herald: New Zealand Business, Markets, Currency and Personal Finance News

The first major lending institution to utter the ‘R’ word is the BNZ.

BNZ economists are becoming increasingly convinced New Zealand is heading for a recession.

They say it may in fact already be here.

BNZ economist Stephen Topliss said today the housing slump and global credit crunch have formed a nasty combination that could be described as an almost “perfect storm”.

He said the paucity of available credit is continuing to put upward pressure on interest rates at a time when householders are already struggling with rising mortgage rates.

Businesses are also facing the prospect of rising debt servicing bills.

Topliss warned the impact of the credit crunch is only just beginning to be felt by the wider community.

That’d be the credit crunch that wouldn’t affect us here, eh Michael?

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