IMF: RBNZ should stand ready to ease further if necessary

The RBNZ should stand ready to ease further if necessary, said the International Monetary Fund on Monday, adding that NZD is now less overvalued than it was.

Headlines

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

Fall in dairy prices

Slowing in Canterbury rebuild

Slower growth in economies offshore of trading partners

Medium-term prospects remain positive