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
