The Australian inflation indicator for April, published this morning, was 2.4%, which is slightly higher than expected, says CommerzBank’s currency analyst Michael Pfister.
Australian inflation rises slightly; The kiwi remains stable after the expected cut
“However, it should be noted that it is maintained within the target range of the Australian Central Bank of 2–3% and only reflects part of the actual pricing change. Before the Central Bank makes its next decision in early July, we will see the growth figures of the first quarter, another report of the labor market and the May inflation figures. Therefore, it is not surprising that the Australian dollar has barely reacted to today’s figures.”
“Meanwhile, the Central Bank of New Zealand (RBNZ) cut the interest rates in another 25 basic points this morning. The RBNZ said that inflation is within the target range and that the real economy is slowly recovering, despite the global uncertainties that affect it. The forecast of the key interest rate was slightly reduced, which suggests that it is likely to rates in the coming months. ”
“However, the RBNZ is now close to its terminal rate. Today, one of the decision makers voted in favor of maintaining interest rates unchanged, which is probably one of the reasons for the positive reaction of the Kiwi. In addition, the chief economist of the central bank emphasized that the key interest rate has now reached its neutral range. Therefore, we hope that the RBNZ soon ends its RBNZ interest rates. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
