RBNZ's Bollard on inflation and the exchange rate

In the speech 'Housing debt, inflation and the exchange rate' given on 2 November Alan Bollard of the RBNZ said higher interest rates needed to dampen demand and inflation had had the side-effect of bolstering the currency.

"We now see the exchange rate as exceptionally high, and in some respects this is unjustifiable; in time it will fall," he said in the speech to a business group in Auckland.

Bollard said the central bank would not stand in the way of any exchange rate fall, which would push

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