Major bank bosses are predicting a recession is now unlikely as consumers and businesses are coping despite high interest rates.

Chief Economic Advisor at Judo Bank, Warren Hogan, says while he agrees a recession may not be likely, the cost of living “squeeze” is causing ongoing strain on spending.

“We’re getting this very gradual slowdown in the economy, mainly led by consumer belt tightening, but no real distress entering the economy,” he told Ross and Russel.

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