The Reserve Bank Governor has delivered a stark warning saying the New Zealand economy risks being punished for its high debt levels.
Dr Alan Bollard says the country's households are carrying too much debt and eventually that's likely to lead to higher debt servicing costs.
Business commentator Bernard Hickey says Dr Bollard's warning is timely.
“At some stage the bond vigilantes discover a speech like Dr Bollard’s and go ‘hmm these guys are not that much better than Greece, perhaps we should punish them too’,” he says.
Kiwis are beginning to get the message - retail sales figures out yesterday show April sales were soft, down 0.3 percent for the month.
RadioLIVE