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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.
The RBNZ’s sector factor model showed core CPI inflation eased to 4.5% y/y in Q4 from 5.2% in Q3 and the peak of 5.7% in the previous 3 quarters. It is the lowest rate since Q4 2021. But like the Statistics NZ CPI data released earlier, the details are likely to make the RBNZ cautious as core non-tradeables inflation remains elevated at 5% down only 0.2pp from Q3. This is still below headline non-tradeables which printed at 5.9% in Q4. These measures reflect domestically-driven price pressures and given they seem sticky, the RBNZ is likely to keep monetary policy restrictive until it is clear that they are no longer so persistent. At this stage rate cuts don’t look imminent.
NZ RBNZ sector factor model core CPI y/y%
Source: MNI - Market News/RBNZ
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.