(Bloomberg) -- New Zealand's central bank unexpectedly
raised its benchmark interest rate to a record 8 percent, saying
housing demand and consumer spending are fanning inflation. The
currency rose to a 22-year high.
``A sustained period of slower growth in domestic activity will
be required to alleviate inflation pressures,'' Reserve Bank
Governor Alan Bollard said in a statement released in Wellington
today. A 60 percent surge in world prices of dairy products the past
six months has boosted farmers' incomes and will stoke inflation
next year, he said.
Read more at Bloomberg Bonds News
raised its benchmark interest rate to a record 8 percent, saying
housing demand and consumer spending are fanning inflation. The
currency rose to a 22-year high.
``A sustained period of slower growth in domestic activity will
be required to alleviate inflation pressures,'' Reserve Bank
Governor Alan Bollard said in a statement released in Wellington
today. A 60 percent surge in world prices of dairy products the past
six months has boosted farmers' incomes and will stoke inflation
next year, he said.
Read more at Bloomberg Bonds News
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