New Zealand Economy Falls Into Recession

New Zealand's GDP has fallen by 0.1%, leading to a technical recession. Despite predictions of modest growth, the economy contracted, influenced by factors like Cyclone Gabrielle. The Reserve Bank of New Zealand (RBNZ) has raised interest rates significantly, impacting the economy. While the stock market remains stable, the Kiwi dollar has weakened. Optimism persists due to low unemployment and strong tourism. The RBNZ plans no further rate cuts, awaiting the impact of previous hikes. Political and economic developments, including an upcoming election and inflation data, will shape future policies.

What are some reasons for optimism in New Zealand's economy despite the recession?

How did the Reserve Bank of New Zealand respond to the economic situation?