Growth in NZ should ease says IMF

WASHINGTON - The International Monetary Fund (IMF) today said growth in New Zealand should ease to about 2.8 per cent in 2005/06, from 4.8 per cent, as domestic demand slows.

In its annual check-up of the New Zealand economy, the IMF said consumer spending should moderate because of a cooling housing market and effects of higher interest rates, while export growth is likely to be dampened by a stronger exchange rate.

The fund said monetary policy faced a difficult balancing act between responding to inflationary pressures while avoiding a sharp slowing of activity.

- REUTERS