Costs are rising sooner once more in New Zealand, Commerzbank’s FX analyst Volkmar Baur notes.
Market costs in nearly three additional rate of interest cuts
“In keeping with month-to-month value knowledge, which solely covers a part of the CPI basket however is a dependable indicator, costs rose considerably sooner once more in June. The complete inflation knowledge for the second quarter won’t be printed till Monday.”
“Nonetheless, if the development is confirmed, this might reinforce the impression that the central financial institution could have reached the tip of its rate of interest cycle, despite the fact that it struck a really dovish tone following its assembly final week.”
“The market continues to cost in nearly three additional rate of interest cuts by the center of subsequent yr. Nonetheless, I’d be far more cautious and proceed to count on just one additional lower at most. However the NZD is more likely to profit little from this tighter financial coverage, as financial momentum stays weak.”
