New Zealand Debit, Credit Card Spending Unchanged (Update2)

New Seeland consumer disbursement on debit,
credit and shop card game was unchanged in December, adding to signs
record-high interest rates are slowing domestic demand.

The value of minutes on electronic card game at retail merchants was
unchanged from November when it rose 1.9 percent, seasonally
adjusted, Statistics New Seeland said in an e-mailed statement
today. Minutes excluding combustible and vehicle gross sales gained 0.4
percent.

Modesty Depository Financial Institution Governor Alan Bollard kept the functionary hard cash rate
unchanged at 8.25 percentage today to battle inflation, which is
expected to be above his mark scope throughout 2008. Higher
borrowing costs and a deceleration lodging marketplace will weigh on
consumer spending, state economists.

''It May not be too surprising that December disbursement was flat
after we had a bumper calendar month inch November,'' said Mark Walton,
economist at Depository Financial Institution of New Seeland Ltd. in Wellington. Still, ''the
consumer is the country of the economic system that volition slow the broader
economy in 2008.''

In a 2nd report, recognition card disbursement rose 7.6 percentage in
December from a twelvemonth earlier, according to figs gathered by the
Reserve Depository Financial Institution and posted on is Web land site today. The gait of spending
slowed from 9.5 percentage in the twelvemonth to November and was the slowest
since May.

Inflation Target

Bollard have small scope to cut involvement rates because
consumer terms rose 3.2 percentage in 2007, exceeding the 1 percnet-
to-3 percentage range he targets. Inflation pressure levels are persisting,
he said today.

Twelve of 15 economic experts surveyed by Bloomberg News forecast
Bollard will maintain the benchmark adoption cost at 8.25 percent
until at least June 30. Two anticipate a cut and one foretells an
increase.

House gross sales drop 32 percentage in December to a seven-year low,
according to Real Number Estate Institute figures. Bollard said last month
he desires to decelerate the place marketplace because it is a cardinal driver of
spending.

Sum card transactions, which include disbursement on medical
services and public utility payments that are not measured by retail sales
figures, also were unchanged from November.

The authorities mathematical statistician said the retail transactions
series stands for about 58 percentage of entire retail sales.

To reach the newsman on this story:
Tracy Withers in Duke Of Wellington at .