{"text":[[{"start":6.85,"text":"New Zealand’s central bank chief said there were signs of a stronger “rebound” in economic growth as the country raised interest rates for the first time in three years to combat persistent inflation."}],[{"start":18.299999999999997,"text":"Anna Breman, the Swedish central banker who was appointed Reserve Bank of New Zealand governor late last year, said the decision to raise rates on Wednesday reflected a trade-off between the lingering effects of the price “shock” from the war in Iran and the backdrop of a recovering economy. "}],[{"start":34.4,"text":"“Both backwards-looking and forwards-looking, the rebound in growth looks stronger. That is good for us,” she told the FT after the RBNZ pushed up rates by 0.25 percentage points to 2.5 per cent, its first rise since 2023. "}],[{"start":49.3,"text":"Breman said new data had shown that growth prior to the Middle East conflict energy crisis had been stronger than was previously thought, driven by agricultural and manufacturing exports as well as tourism. "}],[{"start":63.199999999999996,"text":"She also pointed to signs of recovery in household confidence. Domestic spending has been a drag on the economy. "}],[{"start":69.39999999999999,"text":"The New Zealand dollar gained 0.4 per cent against the US dollar to US$0.57."}],[{"start":76.1,"text":"The July meeting was the first significant test for Breman, as policymakers weighed the risk of higher borrowing costs against the economic recovery. New Zealand has struggled to maintain strong growth, and GDP rose 0.8 per cent in the first quarter. "}],[{"start":91.6,"text":"The RBNZ said it expected annual headline inflation to have peaked at 3.9 per cent in the June quarter and projected a decline to 3.3 per cent in the quarter to September. The bank targets inflation in a band of 1 per cent to 3 per cent."}],[{"start":106.6,"text":"The RBNZ also noted that oil futures were priced significantly below assumptions made two months ago, in the middle of the US-Israeli war against Iran. "}],[{"start":116.5,"text":"The bank said that it was appropriate to start reducing financial stimulus as lower fuel prices would support a recovery in spending. It pointed to rising business confidence and said it expected GDP to expand 0.6 per cent in the September quarter."}],[{"start":131.9,"text":"New Zealand was one of the first countries to start increasing interest rates following the pandemic as inflation started to soar in 2021."}],[{"start":140.4,"text":"It has taken a more cautious approach in the current cycle while other central banks, including the Reserve Bank of Australia, have raised rates to stem a growing tide of inflation."}],[{"start":151.05,"text":"Faraz Syed, an analyst at Citi, said he remained concerned about the strength of New Zealand’s economy."}],[{"start":157.75,"text":"“We continue to see neutral rates closer to 2.5 per cent to 2.75 per cent range and believe that the economy likely can’t handle rates much higher at current juncture,” he wrote in a note."}],[{"start":170,"text":"Additional reporting by William Sandlund in Hong Kong"}],[{"start":179.54999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783491645_4784.mp3"}