Gareth Vaughan details the key news overnight in 90 seconds at 9 am in association with the Bank of New Zealand, including news that a 7.6, initially thought to be 7.8, magnitude earthquake struck off the Kermadec Islands north of New Zealand. See more at the NZ Herald here.
It hit at 7.03am this morning at a depth of 48 kilometres. A tsunami warning has been issued for New Zealand and Tonga with the East Cape, North Cape, Gisborne and Auckland the focus of the New Zealand warning.
Labour's plans to introduce a capital gains tax should it win November's election may cover the sale of businesses, shares and other individual assets and not just be a 15% tax on investment property, according to Radio New Zealand. See more in Alex Tarrant's story here. Meanwhile, capital gains tax opponents are lining up to attack the concept arguing rents and property prices could rise if such a tax is introduced.
However, Victoria University professor Bob Buckle, who led the Government’s 2009 Tax Working Group, says such a property tax would be less damaging to economic growth than personal or corporate taxes, potentially making the tax system fairer. See more at Stuff here.
The People’s Bank of China has hiked interest rates for the third time this year as it continues its attempt to tame inflation. The 25-basis-point increase in lending and deposit rates lifts China's benchmark one-year lending rate to 6.56%, and its benchmark one-year deposit rate to 3.5%. See more here at Reuters.
China's central bank has also raised banks' reserve capital requirements nine times during a nine-month cycle of monetary policy tightening. Inflation was 5.5% in May driven by high food prices and the property market. China’s June inflation data is due out next week. The world's second-biggest economy expanded by more than 10% last year and 9.7% in the first-quarter of this year.
No chart with that title exists.