Economic recovery: Is this time different?
Photo: RNZ
Now that the official cash rate has been cut, with expectations of further reductions through next year, most forecasters are predicting a gradual economic recovery.
But economists at the country's largest bank say things could be different this time.
ANZ's economists said there was "significant uncertainty" about how the economy would respond to lower interest rates, because the recession the country had been through was deliberately engineered by the Reserve Bank.
"Typically, the OCR is lowered in response to some kind of negative national income and confidence shock, but that's not the case in this deliberate recession. How much activity has been deferred rather than cancelled?"
Senior economist Miles Workman said every easing cycle was not the same as the last.
"If you thi...
