New Zealand hikes key interest rate to 4.75% despite cyclone

By NICK PERRY
Associated Press

CHRISTCHURCH, New Zealand (AP) — New Zealand’s central bank has raised its benchmark interest rate by a half-point to 4.75% as it continues trying to wrestle down inflation. The increase, which can raise the borrowing costs for consumers on everything from credit cards to mortgages, comes despite the economic pain that a devastating cyclone is already inflicting on many people. The bank said that over time, the cyclone rebuild will only add to inflationary pressures. Cyclone Gabrielle hit New Zealand last week, killing 11 people and causing billions of dollars in damage to homes and infrastructure.