An economist says signs on inflation are finally looking more positive.  

GDP fell 0.3% in the September quarter, a much worse result than most economists predicted.  

The June quarter figures were also revised down from 0.9% to 0.5% growth.  

Former Reserve Bank economist Michael Reddell told Tim Dower that the Finance Minister is right in saying New Zealand needs urgent economic repair, and she's inherited a large fiscal deficit.  

He says a focus on expenditure restraint is important, and it's not the time for tax cuts. 

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