New Zealand Will Probably Raise Key Rate to 6.25%: BN Survey
Monday 6 September 2004
New Zealand central bank Governor Alan Bollard will probably raise interest rates this week for the fifth time this year to slow the economy as consumer spending fuels inflation.
By The Landlord
Bollard will raise the official cash rate a quarter point to 6.25 percent on Thursday at 9 a.m. in Wellington, according to 12 of 13 economists surveyed by Bloomberg News. The other analyst expects no change. Bollard has increased the benchmark rate from 5 percent at the start of 2004.Bollard in July said more rate increases were likely because the economy was expanding faster than expected. The jobless rate fell to a 17-year low in the second quarter and retail sales rose at four times the pace economists predicted. Most economists surveyed by Bloomberg News say Bollard will raise rates twice more this year.
``The strengthening economy has built up inflationary pressures that will require some restraint,'' said Sean Comber, economist at Australia & New Zealand Banking Group Ltd. in Wellington. ``One rise will take the rate into neutral. It needs to go higher.''
Read More - Opens in a new window
Commenting is closed
Property News
Return to market form
There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.
House Prices
No stopping Capital price rises
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Commercial
NZ proptech start-up scores major investor
Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.
