New Zealand central bank raises interest rates for 1st time in 7 yrs

Economy

New Zealand's central bank lifted interest rates by a quarter percentage point on Wednesday in the first rise in a little over seven years, amid continuing inflation pressure. The official cash rate was raised to 0.5 percent after it was held at a record low of 0.25 percent for more than a year to combat the economic impact of the coronavirus pandemic. The rate hike was widely expected by economists, local media reported, as inflation pressure continues to build toward an expected increase above 4 percent. The central bank, which ended its bond-buying stimulus program in July, had been expecte...

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