Optimism from one economist, New Zealand will narrowly miss a recession.

The Reserve Bank forecasts the nation will hit a period of negative GDP growth about midway through 2023.

Its raised the the Official Cash Rate 75 basis points to 4.25 percent - and expects it will peak at 5.5 percent next year.

But independent economist Tony Alexander says if there is a recession at all, it will be very shallow.

LISTEN ABOVE

• Economist expects RBNZ to raise the OCR by 75 basis points
• National's tax policy under review post-OCR hike- Luxon
• NZ Herald business editor explains what OCR hike means for financial markets