Tag Archives: Inflation

Economy can grow faster than thought before inflation bites, says Treasury

Economic growth is expected to average a historically high annual rate of 2.8 percent over the next five years, although growth will peak in the year to March 2015 at a slightly lower level than was forecast in the budget in May, the government’s half year economic and fiscal update says. Lower than expected inflation means the nominal value of …

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NZ inflation steady at 0.3% in 2Q; kiwi falls as rate hikes questioned

New Zealand inflation held steady in the second quarter compared to the first-quarter pace as gains in prices of electricity, home rentals and new houses were partly offset by cheaper package holidays, vehicles and liquor. The New Zealand dollar fell as traders mull the future interest rate track.  The consumers price index was unchanged at 0.3 percent, for an annual …

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Australia’s central bank cuts key rate to 2.5 percent, matching RBNZ

The Reserve Bank of Australia cut its cash rate by a quarter point to 2.5 percent as expected, matching its New Zealand counterpart’s official cash rate for the first time in more than four years and lifting the relative appeal of the kiwi. The RBA made good on its observation in recent statements that inflation in Australia is benign enough …

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Capital gains from property targeted in government’s plan to fast-track consents

The government is aiming to cool housing inflation, seen as a threat to New Zealand’s financial stability, while speeding up consents as part of a plan to encourage construction of 39,000 new homes in Auckland. Housing Minister Nick Smith’s special housing area proposal, where central government would buddy up with local authorities to unlock land supply, will remove certainty for …

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NZ business confidence falls for second month, dragged down by agriculture

New Zealand business confidence fell for a second month, with the agricultural sector remaining pessimistic about the general economic outlook and profits, while construction remained the most bullish. A net 32 percent of firms expect general business conditions to improve in the year ahead, according to the ANZ Business Outlook, down from 35 percent in the March survey. Firms seeing …

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RBNZ’s Wheeler keeps OCR at 2.5 percent, brushes off weak inflation and points to high dollar

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.5 percent, talking down the threat of soft inflation in recent months and reiterating his view the New Zealand dollar is “overvalued”. The kiwi jumped after the statement. “The high New Zealand dollar continues to be a significant headwind for the tradables sector, restricting export earnings and encouraging demand …

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NZ inflation up 0.4% in 1Q, led by tobacco, higher prescription charges

New Zealand consumer prices rose in line with expectations in the first three months of the year, led by more expensive cigarettes and tobacco from rising excise duty and higher costs for prescription medicines. The consumers’ price index increased 0.4 percent in the three months ended March 31, matching the consensus forecast among economists, for an annual pace of 0.9 …

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NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street

The New Zealand dollar rose back above 85 US cents before figures that are expected to show a pick-up in quarterly inflation and after gains on Wall Street and a modest increase in dairy prices to a new record. The kiwi gained to 84.92 US cents, and earlier reached 85.06 cents, from 84.79 cents at 5pm in Wellington yesterday. The …

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RBNZ’s Wheeler keeps OCR at 2.5 percent , still focused on inflation

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.5 percent, as expected, saying monetary policy is still focused on future inflation and that he’s looking for any sign of more softening in prices. “The bank is closely monitoring indicators for any sign of further moderation and is mindful of recent downside surprises to employment and inflation outturns,” …

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