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Ongoing monetary tightening
The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 3 percent from 2.5 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and contribute to maximum sustainable employment. Core consumer price inflation remains too high and labour resources remain scarce. Global consumer price inflation has continued to rise, albeit with some recent reprieve from lower global oil prices. The war in Ukraine continues to underpin high commodity prices, with global production costs and constraints further exacerbated by supply-chain ... (full story)
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New Zealand dollar gaining after the RBNZ raises its projections for the cash rate ahead
RBNZ projections for the path ahead: • Sees OCR at 3.69% in December this year (up from its previous projection at 3.41%). • Sees OCR at 4.1 in September 2023 (from 3.95%). • Sees OCR at 4.1% in December 2023 (from 3.95%). • Sees OCR at 3.65% in September 2025.
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NZD/USD marches towards 0.6400 on RBNZ’s 50 bps rate hike
NZD/USD spikes up to refresh intraday high after RBNZ rate lift. • RBNZ matches market forecasts of 50 bps rate hike, signals suitability for further tightening. • Resumption of downside in the US Treasury yields, mildly offered stock futures to exert downside pressure on Antipodeans. • Comments from China’s Xi, softer NZ PPI teased Kiwi sellers earlier. NZD/USD takes the bids to refresh intraday high near 0.6365 as bulls cheer the Reserve Bank of New Zealand’s (RBNZ) 50 basis points (bps) rate hike during Wednesday’s Asian session. Although the RBNZ matched expectations of a 50 bps rate hike, to 3.0%, ... (full story)
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