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

NZD is barley changed, trading in a tight band around 0.8210