New Zealand is still feeling the after-effects of high inflation

The Reserve Bank's released its Financial stability report - which says the economy could still get significantly weaker.

Deputy Governor, Christian Hawkesby, says many still aren't benefiting from falling inflation.

He says there's also potential for bad news on unemployment.

Hawkesby says the central bank is predicting 5.5 percent unemployment, but there's a risk it could be even worse.