New Zealand hikes rates 25 basis points

|By:, SA News Editor

As expected, the Reserve Bank of New Zealand continues a string of rate hikes begun in February with an increase of 25 basis points in its official cash rate to 3.5%.

"Economic growth among New Zealand's trading partners has eased slightly in the first half of 2014, but this appears to be due to temporary factors," says the bank in its statement. Of the perky New Zealand dollar: "Unjustified and unsustainable and there is potential for a significant fall."