Interest rate relief: To boost capacity or support demand ...

Commentators and media were quick to latch on to one message from the Reserve Bank of New Zealand chief economist Paul Conway’s speech last week: that the fight to tame inflation still has a way to go.“It’s a long way to 2%."I would add that the real battle is getting it from 4% to 2%, not 7.3% to 4.7%.The spirit of the headlines was that interest rate relief could be delayed –  not that markets are buying into it, continuing to anticipate 150 basis points of reductions in the official cash rate (OCR) over the...