MNI BRIEF: Aussie Wages Growth Lower At 4.1% Y/Y

MNI: PBOC Conducts CNY125 Bln 1Y MLF Weds; Rates Unchanged

MNI BRIEF: Schmid Says Fed Should Have Left QT At Faster Pace

MNI: PBOC Sets Yuan Parity Lower At 7.1049 Weds; -3.97% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1049 WEDS VS 7.1053

Soft April CPIF Not Enough To Alter Riksbank Guidance

MNI: SWEDEN APR CPIF +2.3% Y/Y

INDON Curve Steepens Ahead Of US CPI, Trade Surplus Grows

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BRIEF: RBNZ Surprises With 50bp Hike to 5.25%

(MNI) Sydney

The Reserve Bank of New Zealand hiked the official cash rate by 50bp to 5.25%, beating market expectations of a quarter point rise. The Reserve noted inflation was still persistently high and employment beyond its maximum sustainable level to return inflation to its 1-3% target.

The hike is despite lower than anticipated economic activity over Q4 and emerging signs of capacity pressure easing, the RBNZ said. Demand continues to outpace supply capacity, maintaining pressure on inflation, the Reserve added.

The NZD overnight index swap rate rallied following the decision, with markets pricing in a 5.5% peak at the May 24 meeting, up from 5.3%. The market had expected a 25bp rise (See: MNI RBNZ WATCH: 25bp Lift Expected, Peak Priced Lower). NZD also firmed (See: Firmer, RBNZ Raises OCR 50bps).

In its decision, the RBNZ discussed recent developments in international financial markets and their implications for New Zealand. "Recent banking stress in the U.S. and Europe has resulted in lower wholesale interest rates and an increase in credit spreads," the RBNZ said in a statement.

The RBNZ's committee agreed a further hike is needed to ensure core inflation and expectations begin to fall and discussed a 25-50bp increase.

Daniel covers the Reserve Bank of Australia and the Reserve Bank of New Zealand and leads the Asia-Pacific team.
Central Bank NewsPolicy NewsHomepageRBNZAPACNew ZealandBriefStoryRegion
Daniel covers the Reserve Bank of Australia and the Reserve Bank of New Zealand and leads the Asia-Pacific team.
Central Bank NewsPolicy NewsHomepageRBNZAPACNew ZealandBriefStoryRegion

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.