Comments from the International Monetary Fund on the Reserve Bank of New Zealand
- Says NZD is now less overvalued than it was
- Still might be around 10% overvalued ... but "uncertainties around these estimates"
- Say the current accommodative monetary stance appropriate
- If needed, RBNZ should stand ready for further easing given low inflationary pressures and below potential output
- Economy continues to perform well
IMF mentions the drags on the economy:
- Fall in dairy prices
- Slowing in Canterbury rebuild
- Slower growth in economies offshore of trading partners
"Medium-term prospects remain positive"