An article on Bloomberg re the IMF’s annual economic assessment of New Zealand:
- RBNZ may need to raise rates if rising house prices and household borrowing feed inflation
- “Rising house prices, which are already elevated by standard metrics, are a growing concern”
- But, the IMF says the current accommodative monetary policy stance is appropriate
- NZD is likely to remain elevated because of ample global liquidity
- “New Zealand’s currency is 10 percent to 15 percent above the level that would be consistent with medium-term fundamentals”
N.Z. Housing Market May Warrant Interest-Rate Rises, IMF Says
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NZD is barley changed, trading in a tight band around 0.8210