New Zealand’s economy dips into recession as higher interest rates bite

By NICK PERRY
Associated Press

WELLINGTON, New Zealand (AP) — New figures show that New Zealand’s economy has dipped into recession as higher interest rates take their toll. Statistics New Zealand said Thursday that gross domestic product fell by 0.1% in the March quarter, following a revised 0.7% fall in the previous quarter. That fulfils New Zealand’s definition of a recession, which is two consecutive quarters of negative growth. The slowdown comes after New Zealand’s central bank raised its benchmark interest rate 12 straight times to 5.5% as it tries to tame inflation. The rate is at its highest level since 2008, making it more expensive for people to borrow money for homes, cars and other purchases.