Reserve Bank Governor Alan Bollard may deem there's sufficient cause for concern from resurgent inflation in New Zealand to look through turmoil in global financial markets and hike interest rates tomorrow.

Global economic uncertainty reduces the need for New Zealand interest rates to start rising in June, as is currently anticipated, says the New Zealand Institute of Economic Research. 

Inflation is set to spike higher than economists had predicted as a result of the increase in GST and other levies and imposts, adding to expectations the central bank will begin hiking interest rates at its next meeting on June 10.

KiwiSaver funds provided positive returns for the fourth straight quarter, though the growth is running out of steam and ongoing fears of a debt crisis in the euro zone may be partly to blame, according to Mercer (NZ) Limited.

Standard & Poor's, the international credit agency, has set out a range of conditions that could lead to South Canterbury Finance coming off negative Credit Watch status, but says assets sales alone will not be enough to forestall a downgrade.

The Reserve Bank of Australia raised its benchmark interest rate by a quarter point to 4.5%, saying inflation will move into the top half of ithe average 2%-to-3% range it targets in the coming year.

Reserve Bank Governor Alan Bollard will hold the official cash rate at a record-low 2.5% next week, economists say, with all eyes on the wording he uses for the timing of the resumption of interest rate hikes.

South Canterbury Finance said it is reaping about $1 million a week from collections and sales of distressed assets while investors are rolling over about $100 million a month.

The sales this week will net Allied Farmers more than $3.4 million in cash, part of which is intended to be applied to further debt reduction.

New Zealand inflation accelerated less than expected in the first quarter, suggesting there's less need for Reserve Bank Governor Alan Bollard to rush to raise interest rates this year.

Australia's antitrust regulator has shot down National Australia Bank's A$13.3 billion bid for AXA Asia Pacific saying it would lessen competition in the wealth management market.

Professional director and Securities Commission member David Jackson has resigned from the commission following the commission's prosecution of Nuplex Industries Ltd, of which he is a director.

The New Zealand dollar followed its Australian counterpart lower after weaker-than-expected home loans data across the Tasman, while a Reserve Bank of Australia official indicated the central bank is not far from a neutral monetary policy.  

South Canterbury Finance found an additional $20.4 million of expenses when it completed its first-half report, compared to an estimate last month, and revealed additional breaches of lending covenants that required a waiver from its trustee.

Reserve Bank of Australia Governor Glenn Stevens hiked Australia’s cash rate 25 basis points, taking the gap between New Zealand and Australian official interest rates to their widest gap ever.

Vision Securities, the specialist retirement village property lender, has been sent to the receivers after it failed to settle a major loan last week. Its 953 investors will be safe as they are covered by the government's retail deposit guarantee.