The Reserve Bank should stop raising interest rates, amid worrying evidence that the economy recovery is stalling, says New Zealand Institute of Economic Research Quarterly Survey of Business Opinion chief economist Shamubeel Eaqub.
His comments come with this morning's release of NZIER's June quarter Quarterly Survey of Business Opinion, showing a drop in optimism and actual activity experienced across the economy, and a fall in seasonally adjusted business confidence from 36 per cent to 28 per cent between the March and June quarters.
"It's not quite double-dip recession, more a stumbling recovery," said Eaqub, but the very weak growth evident in the QSBO showed a far weaker economy than would normally be expected a year into the recovery.
Is the economy headed for a 'double dip' recession? Here is the latest selection of Your Views:
Is the economy headed for a 'double dip' recession?
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