"The best thing I ever did was to follow my instincts and judgement and not waver or throw the towel in," David Rosenberg said.

The president said he was not declaring victory over inflation, but marking a pivot point for the recovery from pandemic recession.

The Reserve Bank (RBNZ) also forecasts wage growth to be stronger and the economic recovery to be quicker—partly because the 2011 Christchurch earthquakes prolonged the slowdown. However, these are only projections, and the outlook could still worsen.

Layoff announcements climbed 193% over the last month, according to a report from the consultancy Challenger, Gray, & Christmas.

Investors have sent stocks and bonds higher on expectations of a soft landing. But some Republicans think the central bank overstepped its bounds.