The New Zealand Reserve Bank is expected to hold its first meeting this year at the Asian session of the session tomorrow, Wednesday, as expectations indicate that the Central Bank of New Zealand will raise interest rates by 50 basis points to 4.75%.
The last meeting of the bank at the end of November of last year raised interest rates by 75 basis points to reach 4.25% to reach its highest levels since 2009, while estimates increased that interest levels peak at 5.5% in the third quarter of the year compared to 4.1% in Previous estimates before the meeting.
Annual inflation in New Zealand slowly from 7.3% in the third quarter of last year to 7.2% in the fourth quarter in December, while the bank expected to reach 7.5% to reduce markets from its expectations to raise interest levels from 75 basis points to 50 points in the Wednesday meeting.
With the change of expectations in the New Zealand economy for inflation, the markets are now the lowest pricing of the cash tightening of the New Zealand bank than it was before the fourth quarter numbers, and therefore the importance of the meeting will lie if the bank will reduce its expectations for peak levels of interest or will leave it at 5.5% and will it be reviewed from its expectations for inflation and its expectation In its last meeting at 7.5% in the first quarter and to 6.9% in the third quarter.
The markets have started to establish peak levels of interest in New Zealand at 5.30% after the last inflation numbers, which are less than the bank’s levels at the last 5.50%, while it sees by 60% that the bank begins to reduce interest rates in November, and on Wednesday a meeting will carry a lot of the movements of the New Zealand dollar in the period Next.
The New Zealand government announced the state of emergency in the country because of Hurricane Gabriel last week, and it is expected that the damage of this hurricane will affect the levels of inflation in the areas producing agriculture and inflation of food prices and thus may affect the bank’s decision or the bank’s governor at the press conference.
Markets’ expectations to raise interest by 75 basis points tomorrow and with 25 basis points also have not been ignored by some expectations, and therefore the movements of the New Zealand dollar will be based on .
.. First, the interest rate level, will it be identical to expectations or not Second
Third, the bank’s expectations for inflation and growth
01/11/2024
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