Kiwi Sells Off After Reserve Bank of New Zealand Leaves Rates Unchanged

The Reserve Bank of New Zealand left its official cash rate at 5.50%, largely expected with a few banks expecting a rate hike. The central bank extended its hawkish pause noting that the Kiwi economy has less capacity to absorb additional upside inflation surprises. The RBNZ sees annual CPI 2.6% by March 2025 (prior 2.4%). The bank’s committee members agreed the level of interest rates are constraining spending and inflation pressure. The New Zealand dollar sold off on the no … Continue reading “Kiwi Sells Off After Reserve Bank of New Zealand Leaves Rates Unchanged”

Reserve Bank of New Zealand Leaves Rates Unchanged, Extending its Hawkish Pause

The Reserve Bank of New Zealand extended its hawkish pause as expected. Fresh explicit forward guidance will be published at its next meeting on November 28th. The RBNZ left its Official Cash Rate unchanged at 5.50%. Consensus almost unanimously expected no change. The bank’s committee members agreed the level of interest rates are constraining spending and inflation pressure. The RBNZ last meeting saw the terminal official cash rate again at 5.57% in September 2024. The committee agreed that interest rates … Continue reading “Reserve Bank of New Zealand Leaves Rates Unchanged, Extending its Hawkish Pause”

Reserve Bank of New Zealand Leaves Rates Unchanged 5.50%, Restrictive Rates Seen

The Reserve Bank of New Zealand left its Official Cash Rate unchanged at 5.50%, as expected. Consensus almost unanimously expected no change. The bank’s committee members agreed the level of interest rates are constraining spending and inflation pressure. The RBNZ saw the terminal official cash rate again at 5.57% in September 2024. The committee agreed that interest rates will need to remain at a restrictive level for the foreseeable future. Inflation remains too high. The RBNZ was the first central … Continue reading “Reserve Bank of New Zealand Leaves Rates Unchanged 5.50%, Restrictive Rates Seen”

Reserve Bank of New Zealand Leaves Rates Unchanged 5.50%, Inflation Remains Too High

The Reserve Bank of New Zealand left its Official Cash Rate unchanged at 5.50%, as expected. Consensus almost unanimously expected no change. The bank’s committee members agreed the level of interest rates are constraining spending and inflation pressure. The RBNZ saw the terminal official cash rate again at 5.5% in June 2024. The committee agreed that interest rates will need to remain at a restrictive level for the foreseeable future. Inflation remains too high. The RBNZ was the first central … Continue reading “Reserve Bank of New Zealand Leaves Rates Unchanged 5.50%, Inflation Remains Too High”

Reserve Bank of New Zealand Raise Rates by 25bp to 5.50%, Kiwi Sells Off on Peak Rate

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 25 bps to 5.50%, as expected. Consensus almost unanimously expected another 25bps hike. The bank’s committee members agreed the level of interest rates are constraining spending and inflation pressure. The RBNZ saw the terminal official cash rate aga8in at 5.5% in June 2024. The forex market took the Bank’s signal of the peak rate and swifty sold off the New Zealand Dollar … Continue reading “Reserve Bank of New Zealand Raise Rates by 25bp to 5.50%, Kiwi Sells Off on Peak Rate”

Reserve Bank of New Zealand Unexpectantly Raise Rates by 50bp to 5.25% to Highest Since December 2008

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 50 bps to 5.25%, as expected. Consensus almost unanimously expected another 25bps hike. The Reserve Bank of Australia yesterday kept interest rates steady at 3.6%. The RBNZ was the first central bank in a developed money market to raise its cash rate above the neutral level. The bank’s committee members agreed monetary conditions needed to continue to tighten until inflation back in … Continue reading “Reserve Bank of New Zealand Unexpectantly Raise Rates by 50bp to 5.25% to Highest Since December 2008”

Reserve Bank of New Zealand Raise Rates by 50bp to 4.75% to Highest Since January 2009

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 50 bps to 4.75%, as expected. Back in November, the RBNZ hiked by 75bps to 4.25% and said it had considered a 100bps hike as an alternative and indicated that further tightening was required. The RBNZ was the first central bank in a developed money market to raise its cash rate above the neutral level. The bank’s committee members agreed monetary conditions … Continue reading “Reserve Bank of New Zealand Raise Rates by 50bp to 4.75% to Highest Since January 2009”

New Zealand Stocks Fall 12% in 2022 with Chinese Contagion

New Zealand’s benchmark stock market the NZ50 fell 65.21 points or 0.57% on the last trading day of the year to finish at 11,473.24, with a loss of 12% for 2022. The mood of the market was in tune with global markets hit by soaring inflation, and aggressive monetary tightening from the Reserve Bank of New Zealand. The RBNZ raised its Official Cash Rate by another 75 bps to 4.25% at its last meeting, the highest since January 2009. The … Continue reading “New Zealand Stocks Fall 12% in 2022 with Chinese Contagion”

Reserve Bank of New Zealand Raise Rates by 75bp to 4.25% to Highest Since January 2009

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 75 bps to 4.25%, as expected. The RBNZ says its committee debated a +75 or +100bp hike. The RBNZ was the first central bank in a developed money market to raise its cash rate above the neutral level. The bank’s committee members agreed monetary conditions needed to continue to tighten until inflation back in target range. The RBNZ saw the terminal official … Continue reading “Reserve Bank of New Zealand Raise Rates by 75bp to 4.25% to Highest Since January 2009”

Reserve Bank of New Zealand Raise Rates by 50bp, as Expected

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 50 bps to 3.50%, as expected. The RBNZ says its committee debated a +75 or +50bp hike. The RBNZ was the first central bank in a developed money market to raise its cash rate above the neutral level. The bank’s committee members agreed monetary conditions needed to continue to tighten until inflation back in target range. Yesterday the Reserve Bank of Australia … Continue reading “Reserve Bank of New Zealand Raise Rates by 50bp, as Expected”