RBNZ raises rates citing 'impressive' growth

The Reserve Bank of New Zealand increased interest rates on Thursday 29 January, citing the pressure on resources including the labour market after two years of "impressive" growth. The bank raised the official cash rate 25 basis points to 5.25 per cent.

"It is now prudent to begin returning interest rates to levels that will have less stimulatory effects on demand. By historical standards we do not expect a large adjustment in interest rates will be necessary," Governor Alan Bollard said.