Inflation poses threat to NZ

Rising inflationary pressures exacerbated by accelerating building activity pose a threat to New Zealand's economic growth and warrant a return to more normal interest rates, Reserve Bank governor Graeme Wheeler says. The economy has been expanding beyond its potential growth rate for "some time" and inflationary pressures are beginning to appear, particularly in the construction sector where resources are being reallocated to deal with the Canterbury rebuild and Auckland housing construction

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