The resulting yield curve has delivered a financial environment which is lending very significant support to the economic recovery. Turning now to more recent economic developments, the economic recovery which started in the second half of 2003 has continued in 2004. In terms of year-on-year growth rates, we reached 2% in the second quarter of this year.
The countries of Latin America have, in some cases, locked themselves to the US dollar, and in some cases are thinking of full US dollarisation, after decades of extremely poor money management and hyper-inflation. Neither of these situations has any relevance to New Zealand.