24 The real exchange rate is the nominal exchange rate, measured on a trade-weighted basis, adjusted for the  relative prices between New Zealand and our trading partners. This captures the fact that New Zealand faces many exchange rates, and a weighted measure of individual bilateral exchange rates is necessary to summarise the country’s exchange rate position.
•  Growth in China is improving, though economic activity has slowed further in some other major emerging economies. •  Supported by central bank actions and by positive policy developments in Europe, global financial conditions are more stimulative.