N.Z. Housing Market May Warrant Interest-Rate Rises, IMF Says
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New Zealand’s central bank may need to raise its benchmark interest rate from a record low if rising house prices and household borrowing fan inflation, according to the International Monetary Fund.
“Rising house prices, which are already elevated by standard metrics, are a growing concern,” the Washington-based fund said in its annual economic assessment of New Zealand. “A tightening may be warranted if house-price and credit expansion begin to fuel inflationary pressures.”