Reserve Bank governor Graeme Wheeler kept the official cash rate at a record-low 2.5 percent, while lifting the projected path for interest rates and saying he’s ready to start hiking “as needed” to keep inflation under control. The kiwi gained on the statement. “Annual CPI inflation increased to 1.4 percent in the September quarter and inflation pressures are projected to …

New Zealand shares fell after Fonterra Cooperative Group unexpectedly cut its forecast dividends and earnings for 2014, while the high kiwi against the Australian dollar weighed on companies such as Ebos Group with businesses across the Tasman. The NZX 50 Index fell 2.202 points, or 0.05 percent, to 4704.304. Within the index, 22 stocks fell, 23 rose and five were …

Synlait Milk, the milk processor which joined the NZX in July, says earnings will beat guidance next year on cheaper raw milk prices and growing demand for its products. That contrasts with Fonterra Cooperative Group, which today slashed its guidance in the face of a margin squeeze. International demand is favouring Synlait’s milk powder and anhydrous milk fat products, while …