RBNZ Signals 2014 Interest Rate Rise as Inflation Picks Up
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New Zealand’s central bank said interest rate increases “will likely be required next year” as the economy strengthens and inflation picks up. The kiwi rose.
“With the inflation pressures that have the potential to build up, given the capacity constraints in the economy, we will need to raise interest rates,” Reserve Bank of New Zealand Governor Graeme Wheeler said in Wellington today after leaving the official cash rate at 2.5 percent, a record low. “Exactly when that will start to trigger will be determined by many factors. At this point we don’t expect that to start this year.”