KEY POINTS:
Credit card billings rose at their strongest pace in six months in June, despite three rises in interest rates by the central bank, data showed today.
The Reserve Bank said total billings rose a seasonally adjusted 1.9 per cent last month, following a rise of 0.5 per cent in May and a fall of 0.8 in April.
Billings were up a seasonally-adjusted 9.1 per cent against a 5.7 per cent gain in the May year. It was the quickest rate of monthly and annual growth since December 2006.
Data earlier this month showed retail sales rose 1.2 per cent in May, and electronic card retail sales rose 0.8 per cent in June.
The strength of domestic activity has been a key factor in the RB raising interest rates this year.
Eleven of 17 analysts in latest Reuters poll expect the central bank to raise rates to 8.25 per cent at its next review on Thursday.
Citibank economist Annette Beacher said data in recent weeks had tipped the odds in favour of further RB tightening.
"We expect 25bp to 8.25 per cent, as now does consensus," she said.
"We also expect the RBNZ to leave the door open for additional tightening, should it not witness a material slowdown in activity in the coming months."
- REUTERS
