NZ fiscal consolidation 'may persist' as economy rebalances, Bollard says

Thu, 09 Aug 2012

By Paul McBeth Aug. 9 (BusinessDesk) - The New Zealand government may have to keep its spending in check for a while yet as the economy slowly rebalances away from the debt-fuelled consumption of the past couple of decades that saw private sector borrowing rise to unsustainable rates, Reserve Bank Governor Alan Bollard says. Households are slowly repaying their debts and increasing their level of savings since the global financial crisis as the economic recovery trundles along which has been hampering consumer demand, Bollard told an academi...

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