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RBNZ raised rate to 3.25%

The Reserve Bank of New Zealand announced an interest rate hike on Thursday for the third time in 2014, lifting the cash rate by 0.25 to 3.25%. 

New Zealand's economic expansion "has considerable momentum" and it is "important that inflation expectations remain contained and that interest rates return to a more neutral level," Reserve Bank Governor Graeme Wheeler said in a statement after the meeting. 

Mr. Wheeler reiterated that the "speed and extent" to which the cash rate will need to rise will "depend on economic and financial data, and its implications for inflationary pressures." The central bank's forecasts indicate it expects to raise rates by around another 100 bps over the next 12 months.

That's how ANZ economists comment the current RBNZ policy: "We think the Reserve Bank now needs a reason to pause, rather than a reason to hike and attention will turn to the currency (it has spiked) and Q2 CPI". 

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