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Inflation stall takes pressure off exchange, interest rates
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Inflation fell 0.2% in the December quarter – below average market forecasts but slap bang-on what the Reserve Bank was expecting.
That should forestall any market jitters and should take some pressure – a small degree, at least – off upward moves in the overnight index swap (OIS) rate, not to mention the New Zealand dollar.
It should also mean Reserve Bank governor Alan Bollard’s “no interest rate moves until mid-year” stance can be maintained a little more comfortably.
The latest Consumer Price Index, released this morning by Statistics New Zealand, follows increases of 1.3% and 0.6% in the previous two quarters respectively.
The headline annual rate is 2% – or in the middle... Full Story |
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Submitted Jan 19, 2010 5:24pm
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