Reserve Bank Governor Alan Bollard has warned New Zealand's debt is still a problem for the economy.
New Zealanders have spent less and saved more since the onset of the recession in 2008, but in a speech on Monday Dr Bollard questioned how long this change in behaviour would last.
He says the change hasn't led to a major reduction in the country's overseas debt and New Zealanders need to continue saving more and investing in assets other than houses.
Dr Bollard told Morning Report on Tuesday that the bank had thought people might spend now to beat the 2.5% GST rise - but that doesn't appear to be the case.
