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12.06.2014 13:17

Reserve Bank of New Zealand raised its interest rate to 3.25%

The Reserve Bank of New Zealand (RBNZ) raised its interest rate to 3.25% from 3.00%. New Zealand’s central bank commented that the RBNZ could hike interest rate by 50 basis points this year.

The main comment of the Reserve Bank of New Zealand Governor Graeme Wheeler was after the interest hike that “it is important that inflation expectations remain contained and that interest rates return to a more neutral level”

The Reserve Bank of New Zealand Governor Graeme Wheeler said that inflationary pressures were expected to increase and next interest rise will depend on future economic and financial data and how these affect inflationary pressures. He added that future inflation should be kept near 2%.

The RBNZ said in the statement New Zealand's economic expansion had “considerable momentum”, with estimated GDP growth by around 4% in the year to June.

That was the third interest hike since March. 

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