The Reserve Bank is persevering with its attempts to engineer a recession

Its Monetary Policy Committee's lifted the Official Cash Rate 50-basis points again today - bringing it to 4.75 percent.

Last November, the bank predicted we'd enter a shallow recession this year.

Inflation hasn't budged from its 7.2 percent height since then -- despite a hefty OCR spike.

Bank Governor Adrian Orr says economic demand has to slow considerably to meet supply, and reduce inflation.

He says given current growth rates, they are still projecting the economy will contract by one percent over a nine to 12 month period.