BNZ warns of recession

The Bank of New Zealand is painting a gloomy outlook of the economy over the coming months.

It is concerned the New Zealand dollar will crash later this year and that household spending is continuing to spiral.

Chief economist Tony Alexander is not apologising for their negative outlook.

He said the rate of growth has slowed and with consumer levels of confidence the worst they have been for a while, there is nothing wrong with predicting bad times ahead.

He admitted to worries over New Zealand's tourism industry sagging, concerns of a non-existent economic slowdown and fears over household borrowing.

The warning comes just days after the Official Cash Rate remained unchanged.

Mr Alexander said concerns over the crashing dollar in the second half of the year, and inevitable job losses are soon to be a major part of New Zealanders' psyche.

- NEWSTALK ZB