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 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.
Ariana Gifford didn’t think things could get much worse when the Christchurch quake traumatized her children and smashed possessions. Three years on, she’s struggling to make ends meet after a 30 percent jump in rent.
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.
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.