New Zealand in recession

Wellington: New Zealand's economy has dipped into recession as higher interest rates take their toll, new figures released Thursday show. Gross domestic product fell by 0.1 per cent in the March quarter, following a revised 0.7 per cent fall in the previous quarter, Statistics New Zealand said.

That fulfils the nation's definition of a recession, which is at least 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 per cent 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. The Reserve Bank of New Zealand has indicated it doesn't plan to raise the rate any further for now and that its next move will be a cut.