A record New Zealand dollar pushed the central bank into its first confirmed currency intervention in six years. It’s also forcing the nation’s biggest exporters to innovate as the soaring kiwi squeezes returns.
New Zealand’s unemployment rate unexpectedly rose to the highest since 2010 as more people unsuccessfully sought work, adding to the case for the central bank to keep interest rates at a record low this year.
New Zealand is forecast to keep interest rates at a record low for longer than it did during the global financial crisis as Europe’s debt turmoil and slower export growth increase the odds of policy easing.
New Zealand will probably raise its benchmark interest rate for a second month to control inflation in an economy driven by international demand, including China’s for the nation’s milk, rather than domestic spending.
New Zealand’s central bank Governor Graeme Wheeler is considering Chinese-style lending restrictions to curb a housing boom as weak economic growth and a surging currency rule out economy-wide interest rate rises.
Twenty-year-old Washington D.C. resident Elvish Scheible flew to New Zealand for today’s film premiere of “The Hobbit: An Unexpected Journey,” hoping her elven-queen costume will catch the eye of star Cate Blanchett.
New Zealand’s central bank extended a period of record-low borrowing costs that began in March last year as rising unemployment and falling retail sales slow the economic recovery and contain inflation.