Reserve Bank of New Zealand

Rate Hikes at the Reserve Bank of New Zealand and the Central Bank of Iceland

November 23, 2022

Although not a surprise to investors, the Reserve Bank of New Zealand official cash rate was increased by a larger 75-basis point increment to 4.25%. The prior five changes had been each an increase of a half percentage point. At the start of the tightening cycle in October 2021, the rate  had been just 0.25%. […] More

November PMIs and Many U.S. Releases Just Before the Thanksgiving Break

November 23, 2022

Japanese are observing their Labor Thanksgiving holiday today, and Americans are getting ready for Thanksgiving, which will see a closure tomorrow and an extended long weekend for many companies. The dollar fell  overnight by 1.0% against sterling, which crossed above the $1.2000 threshold, up from a 2022 low of $1.0349. The dollar also lost 0.7% […] More

Reserve Bank of New Zealand Rate Hike

October 6, 2022

The Reserve Bank of New Zealand‘s Official Cash Rate was increased another 50 basis points to 3.5%, which is its highest level since April 2015. This was the fifth straight half percentage point increase since April and brings the cumulative rise over the past year to 325 basis points from a base of 0.25%. CPI […] More

Varying Central Bank Interest Rate Changes to Tackle Inflation

October 6, 2022

The global environment of high inflation, slower economic growth, and central banks raising interest rates has favored the dollar. The weighted DXY dollar  index climbed 0.4% overnight. Although the poorly received plan to eliminate the highest British tax bracket has been withdrawn, British financial markets remain especially vulnerable. Sterling is 0.5% weaker today against the […] More

Investors Spooked Ahead of Today’s FOMC Minutes, Not Reacting Immediately to Other Data

August 17, 2022

FOMC Minutes due at 14:00 EDT are expected to accentuate the primacy of restoring price stability even if that means a continuing rapid rise of interest rates amid a slowing economy. The dollar, which has done well in times when the mood has turned risk averse, advanced overnight by 1.2% against the Australian dollar, 0.9% […] More

New Zealand and South Korean Central Bank Interest Rates Lifted by 50 Basis Points

July 13, 2022

Central Banks in New Zealand and South Korea had hiked interest rates by 50 basis points today. The Reserve Bank of New Zealand’s Official Cash Rate was raised to 2.50%, its highest level since early 2016 and up from a pandemic low of 0.25%. Three increases of 25 basis points have now been followed by […] More

New Zealand Interest Rate Hike

May 25, 2022

The Reserve Bank of New Zealand’s official cash rate was raised by the expected amount, 50 basis points to 2.0%, but the released statement ramps up the commitment to restoring price stability. The Committee is resolute in its commitment to ensure consumer price inflation returns to within the 1 to 3 percent target range. Consistent […] More

Stronger Dollar After Another U.S. Gun Massacre

May 25, 2022

The dollar strengthened 0.4% overnight on a weighted basis, rising 0.7% against the euro, 0.6% versus the Australian dollar, 0.4% vis-a-vis the Swiss franc, and 09.3% relative to the Canadian dollar, Russian ruble, Mexican peso and sterling. U.S. stock indices are essentially flat in futures trading, and so is the 10-year U.S. Treasury yield. The […] More

Fourth New Zealand Central Bank Rate Hike Larger than the Others

April 13, 2022

The Reserve Bank of New Zealand’s Official Cash Rate has been raised twice as much as was expected this month. Today’s increase of 50 basis points followed three 25-basis point moves last October, November and February. CPI inflation in New Zealand increased to 5.9% last quarter, well above target, from 4.2% in 3Q, 3.3% in […] More

Rising Inflation Lifts Interest Rates, the Dollar and the Price of Gold

April 13, 2022

The hope is that March might see inflation crest, but investors have heard that story before only to be disappointed. Fresh on the heals of yesterday’s U.S. March CPI data (a 483-month high of 8.5% in the total index and a 475-month 6.5% high of core CPI), U.S. producer price data arrive today. The Federal […] More