New Zealand unexpectedly hikes rates

|By:, SA News Editor

The kiwi pops higher by 0.6% after the Reserve Bank of New Zealand becomes one of the first developed nations to tighten policy with a 25 basis point increase in its benchmark interest rate to 2.75%. The kiwi is currently buying $0.8518.

"New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based ... Inflationary pressures are increasing and are expected to continue doing so over the next two years."

The iShares New Zealand Capped ETF (ENZL) is higher by 11% YTD.