Markets

Westpac says New Zealand’s central bank will cut rates next month

The RBNZ adopted an explicit easing bias in March, implying it may cut official interest rates again. Westpac Bank expects it will act upon that easing bias in next month, predicting a 25 basis point reduction to the overnight cash rate (OCR). Westpac sees another follow-up cut arriving in May […]
Westpac says New Zealand’s central bank will cut rates next month
Markets

New Zealand’s central bank says it may cut rates again

The RBNZ has surprised financial markets, flagging it may cut official interest rates in the months ahead. Previously, the bank saw rates increasing in early 2021. It cited a weaker global economic outlook and recent strength in the New Zealand dollar as two factors behind the change in policy stance. […]
New Zealand’s central bank says it may cut rates again
Markets

The RBNZ just sent the New Zealand dollar hurtling higher

The RBNZ left New Zealand’s cash rate steady at 1.75% in February, as expected. It still believes the next move in official interest rates could be “up or down”, although its new forecasts suggest it thinks the next move is likely to be higher. While it admitted that international risks […]
The RBNZ just sent the New Zealand dollar hurtling higher
Markets

New Zealand unemployment spikes sharply

New Zealand unemployment spiked sharply late last year as employment growth slowed. Despite an increase in labour force underutilisation, labour costs edged higher thanks in part to new wage deals. Despite the weak details of the report, changes to the survey methodology means there’s reason to be cautious about the […]
New Zealand unemployment spikes sharply
Markets

New Zealand inflation was a little hotter than markets expected

New Zealand CPI fell sharply in the December quarter last year, reflecting a steep fall in petrol prices along with cheaper vegetables and cigarettes. Quarterly CPI grew by 0.1%, leaving the increase on a year earlier at 1.9%. Markets were looking for an unchanged quarterly reading and annual increase of […]
New Zealand inflation was a little hotter than markets expected
Markets

New Zealand’s economy slows sharply

New Zealand’s economy grew at the slowest pace in nearly five years in the September quarter. At 0.3%, the increase was only half the level expected. New Zealand’s economy slowed sharply in the September quarter, expanding at the weakest pace since late 2013. According to Statistics New Zealand (StatsNZ), real […]
New Zealand’s economy slows sharply
Markets

New Zealand unemployment tumbles to the lowest level in a decade

New Zealand unemployment tumbled to the lowest level in a decade in the September quarter as strong hiring acted to push the unemployment rate below 4%. The vast bulk of the decline in unemployment was due to younger Kiwis finding work. Despite sharply lower unemployment and underutilisation levels, wage pressures […]
New Zealand unemployment tumbles to the lowest level in a decade
Markets

New Zealand inflation comes in hot and now the Kiwi dollar is soaring

New Zealand inflationary pressures surged in the September quarter, recording the largest percentage gain since early 2017. Fuel prices surged by 5.5% over the quarter, and 19% over the year. Headline and underlying inflationary pressures continue to move back towards the midpoint of the RBNZ’s 1-3% annual target. The bank […]
New Zealand inflation comes in hot and now the Kiwi dollar is soaring
Markets

The RBNZ could cut rates again if economic growth fails to improve

The RBNZ kept its overnight cash rate steady at 1.75% in September, as expected. The bank is looking for stronger economic growth to help boost inflationary pressures. However, if that doesn’t happen, it could still cut interest rates again, noting the next move “could be up or down”. Its base […]
The RBNZ could cut rates again if economic growth fails to improve
Markets

The New Zealand dollar is on the charge

The New Zealand dollar is moving higher in Asia on news Kiwi businesses were less gloomy in September. Business confidence had fallen to the lowest level since 2008 in August, a period when the economy was in recession. The Reserve Bank of New Zealand will announce its September interest rate […]
The New Zealand dollar is on the charge
Markets

Deutsche Bank thinks the Kiwi dollar should be weaker against the Aussie

The New Zealand dollar has been walloped this year, losing over 11% against the greenback since February. Business confidence has fallen to recession-like levels, increasing fears over a sharp decline in business investment. Deutsche Bank says caution is warranted when interpreting the plunge in business confidence. However, it still sees […]
Deutsche Bank thinks the Kiwi dollar should be weaker against the Aussie