The Monetary Policy Committee today increased the Official Cash Rate (OCR) by 50 basis points, from 4.75 percent to 5.25 percent. The Committee agreed the OCR needs to increase, as previously indicated, to return inflation to the 1-3 percent target range over the medium term. Inflation is still too high and persistent, and employment is beyond its maximum sustainable level. The level of economic activity over the December quarter was lower than anticipated in our February Monetary Policy Statement and there are emerging signs of capacity pressures in the economy easing. However, demand continues to significantly ... (full story)

NZD/USD justifies the Reserve Bank of New Zealand’s (RBNZ) 11th rate hike as it renews the seven-week top following the Interest Rate Decision during early Wednesday, picking up bids to 0.6380 by the press time. RBNZ surpasses market forecasts while announcing 50 basis points (bps) worth increase to its Official Cash Rate (OCR), lifting it to 5.25% from 4.75% prior. While the hawkish RBNZ moves can be linked to the NZD/USD pair’s latest run-up, the broad-based US Dollar weakness shouldn’t also be missed while citing the bullish catalysts. That said, the US Dollar Index (DXY) dropped to the fresh low since February 02 ... (full story)