New Zealand delivers surprise rate hike of 50 basis points to 5.25%
New Zealand’s central bank has raised rates by 50 basis points, bringing the benchmark interest rate to 5.25% and higher than economists’ expectations of a 25 basis points hike.
The latest move brings the interest rate to the highest level since October 2008.
This follows the previous hike of 50 basis points, which saw the interest rate move from 4.25% to 4.75% in February.
The New Zealand dollar strengthened 0.59% to trade at 0.6351 against the U.S. dollar.
Japan’s services sector expands in March, sees second-sharpest rise in business activity
Japan’s services sector continued to expand in March, according to a private survey from the au Jibun Bank.
The country’s services purchasing managers index rose to 55, up from 54 in February and marking the seventh straight month of expansion.
The sector expanded the most since 2013 and marked the second-strongest in the history of the survey.
The economy also saw a rise in new business volumes during the month, marking the steepest rate since February 2019.
Japan’s “rates of expansion in business activity, new business and export orders all accelerated on the month to reach among the highest in their respective series histories,” the release said, while noting that input inflation eased to a 12-month low.
Firms were also “increasingly optimistic” about the outlook for activity over the coming year, amid hopes for stable market conditions, au Jibun bank added.
— Lim Hui Jie
New Zealand expected to hike benchmark rate by 25 basis points to 5%
The Reserve Bank of New Zealand is expected to raise its cash rate by 25 basis points to 5%, according to a Reuters poll of economists. That would take its benchmark interest rate to its highest level since December 2008.
The New Zealand dollar was fractionally higher at 0.6311 against the greenback ahead of the decision.
Stocks in New Zealand traded higher with the S&P/NZX 50 up 0.26% in Asia’s…
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