Growth has moderated as tailwinds have waned: dairy prices have fallen sharply from historic highs and investment activity related to the Canterbury rebuild has reached a plateau. The short-term outlook is challenging with both external and domestic risks, the latter arising from rapid house price inflation in Auckland. However, New Zealand flexible economy is resilient, and medium-term prospects remain positive. Monetary policy has been eased since June and the Reserve Bank stands ready to reduce rates further if warranted. Given the below-potential growth, measures of core inflation around the lower end of the target band, and a still strong exchange rate, the monetary policy stance is appropriate
Notes
"February 2016."
Bibliography
Includes bibliographical references
Notes
Online resource; title from pdf title page (IMF Web site, viewed February 16, 2016)
