But at the same time this strong domestic demand is driving the current account deficit, which itself is partly exacerbated by the opportunities the relatively higher New Zealand interest rates offer overseas investors in the New Zealand dollar. How do we intend to manage these issues? Our primary concern is inflation. We are already seeing signs of domestic spending slowing.
Last week we increased the OCR again and stated that we need to see more housing and consumer  2/3  spending moderation before we will be comfortable that inflation pressures are contained.