Reserve Bank of New Zealand

Asian Growth Concerns.. British CPI and Euroland GDP Figures Release.. And Waiting for FOMC Minutes Due Later Today

August 16, 2023

The Chinese economy remains a concern that weighing on its regional neighbors as well. Property prices in China were 0.1% lower in July than a year earlier. That’s follows zero percent in the second quarter and disappointing retail sales, industrial production, corporate investment, and unemployment data reported yesterday. Equity markets today tumbled 1.3% in South […] More

New Zealand Official Cash Rate Left Unchanged

July 12, 2023

As expected, the Reserve Bank of New Zealand’s scheduled policy review ended with no change in the 5.5% Official Cash Rate level but a pledge by officials to keep their policy stance restrictive for the foreseeable future. Beginning with a doubling of the OCR in October 2021 to 0.50%, the rate was increased at a […] More

Wednesday Double Feature: U.S. CPI Release & Publication of Fed Beige Book

July 12, 2023

Stock markets overnight fell 0.8% in Japan and China but in Europe thus far have climbed by 0.5% (Spain) to 1.2% (Germany). Yesterday’s U.S. share price gains have been modestly extended by U.S. futures. Ten-year sovereign bond yields are lower by 4 basis points in the U.K. and Italy, 3 basis points in France and […] More

Central Bank Rate Hikes in Iceland and New Zealand

May 24, 2023

Iceland’s 7-day term deposit rate was lifted 125 basis points to 8.75%. Such had been as  low as 0.75% prior to May 2021, 2.0% at the beginning of 2022, and 6.0% when 2023 started. With CPI inflation edged up to 9.9% and measures of long-term expected inflation also creeping higher, the statement released in conjunction […] More

More Pessimism

May 24, 2023

The possibility of a U.S. debt default next month persists. Central Bank interest rates were raised today by 125 basis points in Iceland, 50 bps in Nigeria, and 25 bps  in New Zealand. Europe’s largest economy has “suffered a setback” according to the May German business climate index compiled by the IFO Institute. Inflation according […] More

Another New Zealand Interest Rate Hike Carries Surprise

April 5, 2023

Officials at the Reserve Bank of New Zealand had been expected to leave policy steady but instead raised the Official Cash Rate by another 50 basis points to a 171-month high of 5.25%. This was the second half percentage point tightening of 2023 and follows 350 basis points of increase during 2022 and 50-bp hike […] More

New Zealand’s Tenth Central Bank Rate Hike

February 22, 2023

New Zealand’s Official Cash Rate has undergone its tenth hike since October 2021, and the 50-basis point increase matched market expectations. Although not a surprise, the Reserve Bank of New Zealand policymakers haven’t been deterred from getting ahead of inflation despite the country’s recent devastating cyclone underscores a reality that investors bet against central bank […] More

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