Brighter outlook for New Zealand


Inflation is expected to return to the central bank’s 1% to 3% target in the third quarter of this year, IMF said. — Bloomberg

WELLINGTON: New Zealand will have scope to start cutting interest rates later this year as inflation returns to its target band, the International Monetary Fund (IMF) says in a staff report that contrasts with the central bank’s view.

Staff expect a gradual easing of monetary policy starting toward the end of 2024, the IMF said in the concluding statement of its Article IV review of New Zealand’s economy released yesterday.

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