New Zealand today became the first developed country to raise interest rates in the easy-money, post-crisis Western world.
After three years with the policy cash rate at a record-low 2.5%, the Reserve Bank of New Zealand added a quarter-point in an effort to keep inflation at bay.
On the one hand, the move was long expected .But then, comments from RBNZ Gov. Graeme Wheeler & Co. that rates would likely continue rising by another couple points to keep inflation around the 2% target was enough to kick the Kiwi dollar up to 85.18 U.S. cents currently from around 84.74 cents just prior to the hike
After three years with the policy cash rate at a record-low 2.5%, the Reserve Bank of New Zealand added a quarter-point in an effort to keep inflation at bay.
On the one hand, the move was long expected .But then, comments from RBNZ Gov. Graeme Wheeler & Co. that rates would likely continue rising by another couple points to keep inflation around the 2% target was enough to kick the Kiwi dollar up to 85.18 U.S. cents currently from around 84.74 cents just prior to the hike