Reserve Bank of New Zealand

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

New Zealand Interest Rate Hike

February 23, 2022

The 25-basis point hike in the Reserve Bank of New Zealand‘s Official Cash Rate to 1.0% follows similar hikes last October and November and completes the reversal of the 75 basis points of pandemic easing engineered in mid-March 2020. A released statement leaves no doubt that considerable further monetary tightening will be necessary. By two […] More

A Market Pause While Waiting for Other Shoes to Drop

February 23, 2022

Continental European share prices are up 0.6-0.9% so far today in Germany, France, Italy, Spain and Switzerland. Futures trading in the S&P 500 and Nasdaq point to rebounds of 0.6% and 1.0%. In Pac Rim stock market trading, China and Indonesia closed up 0.9%, Hong Kong and Australian recovered 0.6%, and Japan didn’t trade due […] More

A Second Hike of the Reserve Bank of New Zealand’s Official Cash Rate

November 24, 2021

An initial OCR increase of 25 basis points had been done in October, and such has been followed by a second hike of same size to 0.75%. The rate had been previouslyat a record low of 0.25% from mid-March 2020.  A released statement sees continuing reductions in monetary stimulus. Capacity pressures have continued to tighten. […] More

Reserve Bank of New Zealand Raises OCR

October 6, 2021

The Reserve Bank of New Zealand’s Official Cash Rate was doubled to 0.50% in the first increase since June 2014. A statement released by the Monetary Policy Committee there warns that “the economy contracted sharply during the recent nationwide health-related lockdown” but identifies “cause for concern in that inflation expectations appear to have begun rising […] More

Inflation Surprises Persisting, Central Banks Reacting, and Investors Fretting about What Lies Just Ahead

October 6, 2021

Against the backdrop of  central banks reacting to higher-than-forecast inflation, the dollar continues to be a well-bid currency. The weighted DXY dollar index came within a 0.05-point whisker overnight of matching its 52-week high set last November. The U.S. currency also rose 1.1% against the kiwi and Mexican peso, 0.7% versus the euro and Aussie […] More

Cloudy Picture: Inflation Still Elevated but Delta Variant Poses Growth Risk

August 18, 2021

Central bankers and private investors are continuing to balance the pressures of elevated inflation on the one hand but a less certain strong recovery on the other. This has made for choppy markets. Overnight movements in the dollar were narrowly mixed, with net dips of 0.2% against sterling and 0.1% relative to the euro, loonie, […] More

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