Conversely, debt levels may be such that even small increases in interest rates induce a slow-down in consumption spending and in house-building, requiring monetary conditions to be rather easier than now projected. Another important area of uncertainty is the exchange rate. At the present time, the New Zealand dollar is close to its lowest level ever, on a trade-weighted basis.
*  *  *  Members of the central banking fraternity, participants from the financial, academic and media communities, other distinguished guests: on behalf of the Reserve Bank of India, let me welcome you all to this Second International Research Conference. Genesis of the conference The Reserve Bank of India’s First International Research Conference was held in 2010.