New Zealand forecasts recession in 2023 as it delivers largest rate hike in history

New Zealand's reserve bank says spending levels still need to be reduced with rate rises, in order to tame inflation

New Zealand's reserve bank has forecast that the country will tip into recession in 2023, and has lifted the official cash rate by an unprecedented 75 basis points, to 4.25%.

The cash rate hike, announced on Wednesday, is the largest in the central bank's history, and comes as it attempts to rein in New Zealand's 7.2% inflation rate.