New Zealand increases rates by 25 basis points

by Richard Kilner

Story link: New Zealand increases rates by 25 basis points

The Reserve Bank of New Zealand has increased the OCR (Official Cash Rate) by 25 basis points, to 2.75%.

Governor Alan Bollard has said that the rise in rates comes as the country enjoys its second year of growth, following the global recession.

Bollard added that New Zealand was helped by the robust recovery underway in South Asia, as well as growth in nearby Australia and the United States.

The increase in interest rates is the first time in over a year that New Zealand has altered rates.

The increase follows on from a series of rises in Australia, which has recovered well from the downturn and added 150 basis points to its rates (now standing at 4.5%) since September last year.