WELLINGTON—New Zealand’s economy grew at a much faster pace than expected in the second quarter, officials said on Thursday, reinforcing views that the central bank will start raising interest rates despite a recent outbreak of the COVID-19. Gross domestic product (GDP) surged 2.8 percent in the three months through June, Statistics New Zealand said, well ahead of a Reuters poll forecast of a 1.3 percent increase and the Reserve Bank of New Zealand’s (RBNZ) estimate of 0.7 percent. The growth surge follows a drop in unemployment in the second quarter to an 18-month low of 4.0 percent, and a rise in annual inflation to 3.3 percent, above the central bank’s 1-3 percent target range. The New Zealand dollar jumped 0.3 percent after the data was released, settling at $0.7320. “We expect the RBNZ to ‘look through’ near-term volatility, and reduce monetary stimulus, with a series of 25 basis point (rate) …
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