New Zealand Surprises Markets with Rate Rise

New Zealand Surprises Markets with Rate Rise

The Reserve Bank of New Zealand increase interest rates Thursday, for the third time this year. The rises are in contrast to other developed-world economies, including the US, Canada, Europe and New Zealand’s Australian neighbours, where rates have stayed low following the economic crisis. New Zealand’s central bank has signalled more rises are likely in a bid to keep control of inflation. The rise had been expected but the guidance that there would be more was something of a surprise for economists. Read the full story.