New Zealand Economy Expanded 0.8% in Third Quarter From April-June Period

New Zealand’s gross domestic product expanded 0.8 percent in the third quarter from the previous three months and 1.9 percent from a year earlier, a government report showed today in Wellington, a boost the central bank may look past as it awaits more lasting recovery signs before raising record-low interest rates. Investors bet Reserve Bank Governor Alan Bollard will see the tourism windfall as a temporary lift and hold the official cash rate at 2.5 percent until late next year, as the central bank forecasts a stronger recovery in 2012 on rebuilding of earthquake-devastated Christchurch. Deutsche Bank AG economist Darren Gibbs pushed back his prediction for Bollard’s next increase to September from June today. New Zealand’s dollar fell after the data. It bought 76.83 U.S. cents as of 1:41 p.m. in Wellington from 77.08 cents immediately before the report. The currency known as the kiwi is down 13 percent since Aug. 1 when it reached 88.43 cents, the highest level since exchange-rate controls were removed in 1985.