New Zealand share prices closed 1.41 percent lower on Thursday after the central bank surprised markets by raising interest rates, dealers said. The NZX-50 gross index fell 59.58 points to 4,234.62 on turnover worth 153.2 million dollars (115.8 million US). There were 94 falls and 31 rises among the 163 stocks traded.
The central bank raised interest rates a quarter percentage point to eight percent to contain inflation and some economists expect more rises. The bank's move also boosted the New Zealand dollar to 75.66 US cents, the highest level since the currency was floated in 1985 in more bad news for exporters.
The local concerns mirrored those on Wall Street, where US stocks slipped on concerns about inflation and interest rates. Market leader Telecom fell eight cents to 4.72 dollars, Fletcher Building was down 20 cents at 12.70 and Contact Energy fell 22 cents to 8.78.