[20]  Slide 8 Association of higher inflation expectation with lower expected economic growth  https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201124~bcaebee7c0.en.html  8/13  24/11/2020  COVID-19 and monetary policy: Reinforcing prevailing challenges  Other studies come to different conclusions, however. They find either no evidence of inflation expectations affecting consumption decisions or, more disturbingly, even suggest that higher inflation expectations could lower – rather than raise – consumption.
This is particularly important for New Zealand, where banking sector assets account for the majority of total financial system assets and are concentrated in housing and agricultural lending. 14 Earlier this year the Reserve Bank launched the Bank Financial Strength Dashboard. It allows financial  information to be compared across banks.