Will we see a rate hike from the RBNZ?

Undoubtedly, the decision of the Reserve Bank of New Zealand (RBNZ) basically Interest rates Finance will be one of the events Clue This week. As most market analysts expect a New riseTraders will be aware of the impact this decision could have on the value of the New Zealand dollar against other currencies.

Meanwhile, in the US, negotiations continue Loan ceilingAnd both sides say they were determined Progress.

On the other hand, in Europe, the person responsible for monetary policy European Central Bank (ECB), Francois Villeroy de Galhau said he expects to reach the terminal rate after the summer. The Bank of France governor pointed out, “Now, the key question is not how much more rates need to be raised, but how strong the impact of what is already happening. It is important to be aware of the consequences. The previous increases were significant and exceptionally fast. Now, ​The timing of keeping interest rates higher is more important than the final number.”

RBNZ rate decision

The Reserve Bank of New Zealand is expected to announce its rate decision on Wednesday morning, according to several economists rise 25 basis points. 14 out of 21 economists expect that, according to a Reuters poll Keep going 5.50% in the next quarter.

The Central Bank of New Zealand’s main objective continues to be to control inflation, which is why it has been raising rates across the board. 500 basis points From October 2021 onwards. In this regard, ANZ analysts noted in their report: “We have raised our maximum OCR forecast to 5.75% pre-budget (due to both net migration and fiscal outlook), and post-budget, we see a Additional upside risk. Additionally, we now estimate a 40% chance of a 50 basis point hike on Wednesday (versus 20% pre-Budget). Our ratings go Couples at market Generally”.

UK CPI inflation April 2023

Office for National Statistics (ons) will publish data related to inflation CBI Inflation in the UK for April will be 8.2% year-on-year, according to market experts. Very low 10.1% recorded in March. This is undoubtedly an important one problems As has the cost of living, the British government has faced in recent months Nick In Budget Family from all over the country.

A report written by ING analysts underlined that the GBP could be significantly affected Downside risks If the country’s CPI inflation figures are not positive. The report reads: “UK inflation data due this Wednesday Decisive per pound. If our expectations are right and prices cool enough to convince the Bank of England Pause His process Hardening In June, downside risks remain for GBP.”

New Zealand Retail Sales for Q1 2023

The RBNZ rate decision won’t be the only news out of New Zealand on Wednesday morning. Statistics New Zealand The 1Q retail sales report will also be released, for which A Decline 0.4% in the quarter. As for the Q4 2022 retail sales report, we noticed give up 0.6% core retail sales are expected come down 0.6%, after falling 1.6% in the last quarter of 2022.

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This content does not constitute and should not be construed as investment advice, investment advice, offer or solicitation of transactions in financial instruments. Please note that such trading analysis is not a reliable indicator of current or future performance as conditions may change over time. Before making any investment decision, you should seek the advice of independent financial advisors to ensure you understand the risks involved.