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New Zealand Expected to Raise Rates to Cool Overheating Economy
New Zealand is set to raise interest rates this week, the first advanced economy in the Asia-Pacific to begin normalizing policy, as a powerful recovery unhindered by delta outbreaks shows signs of overheating. The Reserve Bank of New Zealand will lift the official cash rate by a quarter percentage point to 0.5% at its review Wednesday in Wellington, according to 13 of 17 analysts surveyed by Bloomberg. One economist predicts a half-point increase and three see no change. Markets also expect a hike as concerns mount that labor shortages will unleash wage-push inflation. “It is clear the New Zealand economy no ... (full story)