A warning has come from Sir John Key that there are no guarantees when it comes to our post-Covid economic recovery.

The Reserve Bank is keeping the Official Cash Rate unchanged at a record low 0.25 percent, but is pointing to increases some time next year.

The former Prime Minister says households have been taking advantage of low interest rates to borrow more.

But Key told Mike Hosking many businesses have been reluctant to borrow, because of the ongoing economic uncertainty created by the pandemic.

“Maybe it’s all good, but, they’re also worried ‘what if there’s another variant’ or we keep getting locked down. There’s a lot of conservatism on the corporate side.”

LISTEN ABOVE