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)
Messaging: wayne.cole.thomsonreuters.com@reuters.net))
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