Rate hike for New Zealand
THE RESERVE Bank of New Zealand brought an end to an era yesterday, becoming the first country with a G10 currency to raise its benchmark interest rate since 2011.
Monetary policymakers cited the momentum of the economy, with 3.3 per cent GDP growth estimated for the year to March. The central bank is also concerned about the high price of export commodities.
New Zealand’s benchmark rate will rise to 2.75 per cent, from 2.5 per cent. The policy rate was above eight per cent at the onset of the financial crisis.
It is the first rate hike by the group of advanced economies since some began easing again in 2011.