The long decline in interest rates is coming to an end.

Inflation targeting, a monetary policy framework pioneered in New Zealand, is now widely discredited.

The economy grew by 1.1 per cent in the first three months of this year, more than double the rate expected by economists. This strong growth follows revised growth of 0.4 per cent in each of the previous three quarters.

Expectations that the US Federal Reserve will announce measures tomorrow to prop up the flagging economic expansion bolstered Wall St overnight.

The New Zealand dollar held above 79 US cents as leaders from the Group of 20 nations increased pressure on European Union policy makers.

Wall St was up overnight as investors opted to rekindle optimism the US Federal Reserve will come up with new stimulus measures.