Economy of New Zealand

Auckland's harbour reflects the healthy outlook for the commodities-driven national economy. The central bank may raise interest rates to 5.25 per cent within a year. Photo: AFP

New Zealand central bank leads way in raising interest rate

New Zealand's central bank raised interest rates yesterday and signalled further rises as far out as early 2017, taking the lead among developed economies in tightening monetary policy as it tries to quell inflation pressures in a strong economy.