RBNZ's Bollard signals rates may rise

The Reserve bank of New Zealand said Thursday 25 January it will probably raise the benchmark interest rate from a record-high 7.25 percent because a surge in consumer spending and house prices may fuel inflation.

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``We remain concerned about the upside risks to medium-term inflation,'' Reserve Bank Governor Alan Bollard said in a statement after he left the rate unchanged. ``In the absence of clear indications of moderation in housing and dem