China and NZ shrug off Fed hike

U.S. Federal Reserve will cut interest rates on July 31. - Reuters

SYDNEY: China, Taiwan and New Zealand sat tight after the Federal Reserve’s latest rate hike, but Indonesia and the Philippines pulled the trigger yesterday to prop up their battered currencies and temper risks to inflation and financial stability.

In a statement that marked the end of the era of “accommodative” policy, Fed policymakers lifted rates by 25 basis points (bps) to 2%-2.25%. The US central bank foresees another hike in December, three more next year, and one in 2020.