Economists expect the Reserve Bank will raise interest rates further late this month, despite lower than expected inflation figures.

New CPI figures show prices rose 0.3 per cent for the June 2010 quarter, meaning annual inflation is running at 1.8 per cent.

Tax cuts announced in the May Budget have drawn overwhelming support from the country's chief executives.

Inflation is expected to spike higher than many were predicting, as a result of yesterday's Budget tax changes.

John Key has defended bigger tax cuts for the wealthy, arguing they already paid a big portion of tax. He promises the 'vast majority' of New Zealanders will be better off.

As an external debtor country, NZ could be vulnerable to any renewed deterioration in global debt markets, the Reserve Bank Governor says.

Greece and the wider eurozone scrambled back from the brink of disaster again on Friday as the outline of an IMF/eurozone rescue package emerged.

Bill English says $1.8bn of "low quality" spending will be redirected education, health and law and order in next month's Budget.

The Govt is adding another $1.8bn in spending cuts to the $2bn already announced over the next four years, Bill English has announced.