KEY POINTS:
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.
Earlier this week, a monthly survey published by BNZ showed its worst confidence levels among readers since February 2006, with 62.3 per cent of respondents expecting conditions to deteriorate.
- NEWSTALK ZB
