The global economic expansion is speeding up, data this week are projected to show. In the U.S., a gain in fourth-quarter gross domestic product probably completed the strongest six months of growth in almost two years for the world’s largest economy. The pickup combined with progress in the labor market means Federal Reserve policy makers meeting this week may ease up again on the monetary accelerator.
More New Zealand consumers expect higher house prices, adding to the case for a pick-up in the residential property market that may deter the central bank from cutting interest rates, according to ASB Bank Ltd.
Dairy-production growth in New Zealand may slow or remain flat this year as the world’s largest exporter suffers from the worst drought in at least three decades, pushing prices higher, according to ASB Bank Ltd.
New Zealand’s central bank said the pace of future interest-rate increases will depend on the booming housing market’s impact on prices and reiterated it will keep borrowing costs at a record low this year.