Friday, September 19, 2014   

New Zealand begins rates tightening cycle
(03-13 09:41)

New Zealand today became the first advanced economy in the world to lift interest rates since 2012, ending a three-year freeze imposed after the devastating Christchurch earthquake.
The Reserve Bank of New Zealand raised the official cash rate by 25 basis points to 2.75 percent, saying it no longer needed to be kept at a record low because the economy's expansion “has considerable momentum.’’
Bank governor Graeme Wheeler signalled the rate rise would be the first of many, as the central bank looks to keep a lid on inflation and return the cost of borrowing to “normal'' levels.
“The bank's assessment is that the Official Cash Rate will need to rise by about two percentage points over the next two years for inflation to settle,'' he said.
He added: “The speed and extent to which the OCR will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures.''—AFP

   
Other Business breaking news:
China sentences GSK officials to 2-4 years in prison: Xinhua (09-19 17:05)
China's total loan demand dampens in Q3: survey (09-19 16:51)
Drugmaker GSK fined in China graft probe: report (09-19 16:50)
Hang Seng tracks Street gains (09-19 16:43)
Alibaba sets IPO share price at US$68 (09-19 15:39)
London stocks surge after Scotland rejects independence (09-19 15:38)
Japan downgrades economic assessment as PM promises reform (09-19 14:03)
Chinese buyers lead charge in iPhone 6 global debut (09-19 13:25)
Hang Seng dips, Shanghai gains (09-18 16:17)
Nikkei jumps on weaker yen (09-18 14:44)

More breaking news >>

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