New Zealand lifts interest ratesCITING INFLATION: The move followed South Korea, while the US Federal Reserve maintained its monetary policy amid market expectations of a change by year-endAFP, WELLINGTONNew Zealand yesterday became one of the first developed economies to raise interest rates since the onset of the COVID-19 pandemic, as the central bank bids to rein in rising inflation. The US Federal Reserve has so far maintained its monetary policy stimulus, although markets expect a change before the end of the year. The RBNZ cited a recovering global economy and increased international mobility caused by rising COVID-19 vaccination rates in making its decision. The bank said New Zealand’s inflation rate was set to rise above 4 percent in the medium term, exceeding its 1 to 3 percent target range. The virus has since been contained to Auckland and the bank signaled “further removal of monetary policy stimulus is expected over time.”Kiwibank Ltd chief economist Jarrod Kerr said New Zealand monetary policy had entered its first tightening cycle in seven years.

Source: Taipei Times October 06, 2021 15:56 UTC