N.Z. CENTRAL BANK SEES SLOWER MONEY, CREDIT GROWTH

  Monetary and credit growth rates in
  New Zealand are not expected to continue at current levels
  following the Reserve Bank's move to tighten liquidity late
  last year, Reserve Bank Governor Spencer Russell said.
      The monetary and credit growth figures for the December
  quarter were probably artifically inflated by unusually high
  growth in inter-institutional lending activity on the short
  term money market, Russell said in a statement.
      The bank moved to tighten liquidity when the initial signs
  of the recent expansion became apparent in September and
  October last year, Russell said.
      Broadly defined M-3 figures released today showed growth of
  17.8 pct in the year ended December compared with 13.1 pct in
  the year ended September.
      Annual growth of private sector credit in calendar 1986 was
  30.7 pct compared with 16.5 pct in the September year.
      "Available evidence suggests that corporate customers,
  including non-bank financial institutions, have been exploiting
  differences between interest rates on overdrafts with trading
  banks and rates in the call market," Russell said.
  

