Free Trial
EQUITY TECHS

E-MINI S&P (Z2): Heading North

EURJPY TECHS

Bearish Threat Remains Present

EUROZONE ISSUANCE

EGB Supply W/C 14 Nov, 2022 (2/2)

BTP TECHS

(Z2) Watching Resistance

EUROZONE ISSUANCE

EGB Supply W/C 14 Nov, 2022 (1/2)

USDJPY TECHS

Settles South of Y140

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

VIEW: ASB Tweaks Call

RBNZ

ASB note that “today’s CPI inflation print made for worrying reading, with annual inflation having a 7+ handle, annual non-tradable inflation hitting record highs and with distributional and core measures showing a widening front of price increases. While annual CPI inflation looks to have peaked this cycle, the inflation outlook is still highly uncertain and far too high for the RBNZ’s comfort. We have long been wary of the risk of annual CPI inflation staying outside the inflation target for considerably longer than expected by the RBNZ, and today’s prints supports the view of high inflation becoming increasingly entrenched. As such, more restrictive OCR settings earlier than envisaged are required, and we now expect 50bp hikes in August and October, a 25bp November hike and a 3.75% end of 2022 OCR peak. However, persistently high inflation runs the risk of more aggressive OCR action, including a possible 75bp August hike and higher OCR endpoint this cycle. We have pencilled in OCR cuts from 2024 but this will depend on there being sufficient slack in the labour market and the external inflation environment cooling, both of which have shown few signs of doing so to date.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.