Aussie Dollar/Kiwi
More Green Shoots
August 26, 2009
The signs of economic spring are arriving in greater abundance and color, and it’s happening most everywhere. World trade volume rose in June for the first time in 11 months according to a Dutch think tank. Real GDP expanded 1.3% at a seasonally adjusted annualize rate (saar) during 2Q09 in both Germany and France. Euroland’s […] More
Lower U.S. Inflation
August 18, 2009
Producer prices fell 6.8% in the year to July, a 16.7 percentage point turnaround from its 9.9% rise during the year to July 2008. Core PPI inflation slowed to 2.6% from 3.5% a year earlier. U.S. consumer prices declined 2.1% in the latest statement year, a 7.7 percentage point drop from the rise of 5.6% […] More
Reserve Bank of Australia Drops Easing Bias
August 4, 2009
Australian monetary officials kept the cash rate at 3.0%, where such has been since April 7. The rate had been cut in six steps from a peak of 7.25% at the start of last September. A statement from policymakers dropped a prior reference to available scope for further easing if needed but at the same […] More
Australian Central Bank Rate Decision Preview
August 3, 2009
More than with most monthly meetings, the Australian dollar’s near-term fate hinges on Reserve Bank’s policy decision, due Tuesday at 04:30 GMT. The central bank undoubtedly will leave its cash rate at 3.00%, which is the level since a 25-basis point cut on April 7. In four moves from early October to early February, the […] More
New Zealand Cash Rate Held Steady at 2.5% as Expected
July 29, 2009
As at the previous interest rate meeting on June 11, New Zealand monetary officials did not cut rates further but released a pretty somber statement warning of the risks of an excessively high kiwi and wholesale interest rates. The central bank cash rate was first cut a year ago by 25 basis points to 8.0%. […] More
Australian Cash Rate Held Steady
July 7, 2009
As in May and June, the Reserve Bank decided to keep its target cash rate unchanged at 3.0%. In six moves, such had been reduced 4.25% starting with a 25-bp drop last September and including reductions of 100 bps each in October, December and February, 75 bps in December, and 25 basis points in April. […] More
Commodity-Sensitive Currencies Stronger Than Officials Desire
June 22, 2009
Prime Minister Key of New Zealand today became the latest official with a commodity-sensitive currency to warn about damage from recent excessive appreciation in that currency, asserting that “if the exchange rate was to rise too rapidly, that would run the risk of derailing the recovery process.” Bank of Canada Governor Mark Carney had lodged […] More
New Zealand Monetary Policy
June 11, 2009
The Reserve Bank’s cash rate was held at 2.5%, marking the first policy meeting since 2Q08 not to vote a rate cut. However, the rate bias remains downward. A statement from New Zealand monetary officials said the cash rate would likely be at 2.5% or lower until “the latter part of 2010.” Growth and inflation […] More
A Message From the Reserve Bank of Australia
June 2, 2009
Coming into this month’s RBA policy meeting, more and more analysts were predicting no more Australian interest rate changes before 2011. A chief role of transparent monetary policymaking is to correct investors misconceptions early lest big surprises result. Data released prior to today’s central bank announcement would have fanned the view that the 3.0% cash […] More
Australian Rate Decision Preview
June 1, 2009
The 3.0% cash rate will be left unchanged when monetary officials reveal their decision at 04:30 GMT tomorrow. After perusing the Reserve Bank’s quarterly Monetary Statement in early May, many analysts concluded that the rate will remain at 3.0% through the end of next year. That Statement and minutes from last interest rate policy meeting, […] More
