New Zealand central bank says economy slowing, still not sure if rates high enough

Kitco Media
By Reuters
Published:
Updated:
Reuters
SYDNEY, March 23 (Reuters) - A top New Zealand central banker on Thursday said interest rates were clearly in contractionary territory and causing a welcome slowdown in demand in the economy, though it was not yet clear that inflation expectations were under control. Reserve Bank of New Zealand (RBNZ) chief economist Paul Conway said the 450 basis point rise in interest rates over the last 18 months was still "percolating" through the economy and would likely further weigh on consumer spending. Yet it was unclear whether inflation expectations were falling fast enough to mean current and projected rate setting were high enough to be disinflationary. (Reporting by Wayne Cole; Editing by Christopher Cushing)

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