Economics

New Zealand Poised to Hike Rates to Cool Overheating Economy

  • Economists, investors expect RBNZ to raise cash rate to 0.5%
  • Inflation expectations have now increased to a seven-year high
Photographer: Birgit Krippner/Bloomberg
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New Zealand is set to raise interest rates this week, the first advanced economy in the Asia-Pacific to begin normalizing policy, as a powerful recovery unhindered by delta outbreaks shows signs of overheating.