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'Self-fulfilling negative spiral': Why is the economy struggling?

Author
Newstalk ZB,
Publish Date
Thu, 9 Oct 2025, 1:58pm
Photo / File
Photo / File

'Self-fulfilling negative spiral': Why is the economy struggling?

Author
Newstalk ZB,
Publish Date
Thu, 9 Oct 2025, 1:58pm

The Reserve Bank's continuing to walk a fine line, with its move to cut the OCR 50-basis points to 2.5%. 

Economic data suggests inflation has now hit 3%. 

Finance Minister Nicola Willis is blaming rising rates, saying they’re having a disproportionate impact on overall inflation, whereas other sectors are stabilising. 

NZ Herald Business Editor Liam Dann told Kerre Woodham we almost seem to be in a self-fulfilling negative spiral. 

He says we should be feeling better, but we aren't, and then we start questioning ourselves and the economy. 

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