The Reserve Bank held the OCR steady at 5.5 percent, but warned people about the risk that came with increased rates.

Governor Adrian Orr says rates will need to stay high for a sustained period- and warned this could lead to more unemployment and financial stress 'than expected'.

NZ Herald Wellington business editor Jenee Tibshraeny says the RBNZ's 'engineered recession' came with risks- and we're seeing the results.

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