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WELLINGTON, March 13 (Reuters) - New Zealand's central bank raised its benchmark cash rate by 25 basis points to 2.75 percent on Thursday, as expected, and flagged a series of further increases to keep inflation pressures in check as the economy gains momentum.
The Reserve Bank of New Zealand's (RBNZ) decision was seen as a near certainty, as it had said in January it would start normalising policy soon. Sixteen of 17 analysts in a Reuters poll expected a 25 basis point rise, with one looking at a June rise.
For the text of the RBNZ's statement click on
Ahead of the decision, financial markets had fully priced in a 25 basis point rate rise on Thursday as well as another 100 basis points of tightening over the next 12 months.
The official cash rate has been held at a record low of 2.5 percent since March 2011, when the RBNZ delivered an emergency 50 basis point cut after an earthquake badly damaged Christchurch, the country's second-biggest city.
The start of a tightening cycle puts New Zealand well ahead of major central banks in developed economies, who are still grappling with the aftermath of the global financial crisis.
New Zealand's 2.75 percent official cash rate compares with Australia's 2.50 percent, the U.S. Federal Reserve's target of 0.0-0.25 percent, the European Central Bank's 0.25 percent, and the Bank of Japan's 0-0.1 percent.
(Reporting by Gyles Beckford and Naomi Tajitsu; Editing by John Mair)
((Gyles.Beckford@thomsonreuters.com)(+64 4 802 7977)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net))
Keywords: NEWZEALAND ECONOMY/RATES