WELLINGTON : New Zealand's central bank on Wednesday hiked interest rates for the first time in seven years and signalled further tightening to come, as it looks to cool its domestic economy and a red-hot housing market.
The increase in the cash rate to 0.50per cent by the Reserve Bank of New Zealand had been forecast by all 20 economists polled by Reuters. "The Committee noted that further removal of monetary policy stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment," the RBNZ said in announcing its decision.
In neighbouring Australia, the central bank held interest rates at a record low 0.1per cent for an 11th straight month on Tuesday.
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