Tracy Withers

New Zealand’s exodus of citizens to Australia accelerated in the first three months of the year, reaching the highest in 13 years in a further blow to the government just weeks from an election, latest data show.

For decades, moving “across the ditch” to Australia has been an easy option for New Zealanders seeking higher pay and broader prospects. There’s no visa required and it’s just a quick, three-hour flight separating the two countries.

New Zealand’s interest rate decision in late October is “wide open,” according to Reserve Bank chief economist Paul Conway, even as inflation pressures build.

New Zealand’s trade deficit with China widened in the 12 months through September amid a surge in imports of electric vehicles and mobile phones.

New Zealand inflation likely eased slightly in the third quarter, but the respite is set to be short-lived as a weaker currency and surging oil prices drive an acceleration in the final three months of the year, building the case for rate hikes.

New Zealand’s annual inflation slowed more than expected in the third quarter as fuel prices retreated, offering a brief respite to the government little more than two weeks from an election.

In New Zealand, the rising price of everyday items is sobering: bread costs 64% more than three years ago, butter is up 57% and electricity 27%. Hikes like these are causing politicians across the spectrum to propose radical market interventions to improve competition and lower costs ahead of next month’s election.

New Zealand’s central bank will need to move aggressively to raise interest rates if it wants to contain inflation, even if that means a hike just 10 days before a general election, economists say.

New Zealand’s central bank unexpectedly maintained its key interest rate citing global uncertainty that is impacting domestic demand. The New Zealand dollar slid as much as 1.7% to 55.86 US cents immediately after the decision.

New Zealand’s central bank unexpectedly maintained its key interest rate, citing global uncertainty that is impacting domestic demand. The kiwi dollar fell.