Prices are going up faster again in New Zealand, says CommerzBank’s currency analyst Volkmar Baur.
Market prices anticipate almost three additional interest rates
“According to monthly price data, which only covers a part of the CPI basket but are a reliable indicator, prices rose significantly faster in June. Complete inflation data for the second quarter will not be published until Monday.”
“However, if the trend is confirmed, this could reinforce the impression that the Central Bank could have reached the end of its interest rates cycle, although it adopted a very moderate tone after its meeting last week.”
“The market continues to anticipate almost three additional interest rates for the middle of next year. However, I would be much more cautious and I would continue to wait only one additional cut. But the NZD will probably benefit little from this more restrictive monetary policy, since the economic impulse is still weak.”
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.
