New Zealand
New Zealand Central Bank Rate Raised But Statement Signals Greater Caution
July 28, 2010
The Reserve Bank of New Zealand has implemented a second 25-basis point rate increase. The first was announced June 10, and today’s lifts the rate to 3.0%. The central bank’s statement was less hawkish than June’s communique. Growth had been called broad-based seven weeks ago, but in contrast considerable discussion this time is spend on “subdued [...] More
Weaker Aussie and New Zealand Dollars
July 28, 2010
The U.S. dollar advanced 1.0% and 0.7% against its Australian and New Zealand counterparts but was pretty steady otherwise. The Greenback dipped 0.3% against the loonie, 0.2% relative to the Swissy and yen, and 0.1% against the euro. The dollar rose 0.1% against sterling and is again unchanged versus the yuan. Stocks rose sharply overnight [...] More
Slump in Japanese Equities
July 16, 2010
A 2.9% plunge in the Nikkei, its worst session in nearly six weeks, led a difficult day for Pacific Rim equities. Weakness in stocks reflected yesterday’s poor indications of U.S. manufacturing and a disappointing earnings report from Google. Stocks fell by 0.8% in South Korea, 0.7% in the Philippines, and 0.5% in New Zealand, Australian, [...] More
New Zealand Gets First Rate Increase
June 9, 2010
The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) to 2.75% from 2.5%, which had been the OCR level since a 50-basis point cut in April 2009. Most but not all analysts anticipated the move. Central bank officials project a more broadly-based recovery with 3.5% GDP growth in both 2010 and [...] More
Weaker Euro, Pound and Swiss Franc
May 13, 2010
The dollar has advanced 0.4% against sterling, 0.3% versus the Swissy, and 0.2% against the euro, but it has softened against commodity-sensitive currencies like the Aussie dollar (0.6%), kiwi (0.5%) and Canadian dollar (0.6%). Concerns persist that the EU rescue package will not prove adequate and about the impact of coming austerity. Britain’s new Conservative-led [...] More
New Zealand Official Cash Rate Kept at 2.5%
April 28, 2010
New Zealand’s official cash rate (OCR) has been at 2.5% for a full year since a 50-basis point cut in April 2009. The decision to leave the OCR at 2.5% met expectations, but the statement from monetary officials was less hawkish than after the prior meeting in several respects. Less was said about private domestic [...] More
Reserve Bank of New Zealand Meeting Review: No surprises
March 10, 2010
The Official Cash Rate of New Zealand was left at 2.5%, where it has been since April 2009. After New Zealand entered a five-quarter recession in the first quarter of 2008, 575 basis points of rate cuts were implemented between July 2008 and April 2009. As they did after the prior two meetings and as [...] More
New Zealand Reserve Bank Signals Onset of Rate Increased to Occur Around Mid-2010
January 27, 2010
As expected, the Reserve Bank of New Zealand retained a 2.5% cash rate. It’s key policy rate has been at that level since the end of April 2009. Seven reductions totaling 575 basis points were implemented between July 2008 and then, starting with a cut of 25 bps in July 2008 and followed by a [...] More
China and Greece Weigh on Investor Psychology
January 20, 2010
Markets continue to obsess about Greece’s fiscal problems. Stark of the ECB said that fiscal rules mustn’t be bent to accommodate Greece and stressed that the euro area economic recovery will be uneven and slow. The euro fell below $1.4200 and lost 0.9% against the dollar. The Swiss franc also fell 0.9%, while sterling is [...] More
