Interest rates push upwards
10..3.26 Global interest rates have pushed higher in response to the attacks on Iran Markets are interpreting the developments as an inflationary supply shock,” says Stuart Ritson, senior fixed interest strategist at BNZ Markets. “The dominant concern is oil-driven inflation which has contributed to the market pricing more hawkish outcomes for global central banks including the RBNZ. “A sustained disruption to Middle Eastern energy supply could have a material impact on the inflation outlook,...
Cash Rate steady on 2.25%
With the economy at an early stage in its recovery, the Reserve Bank decided to hold the Official Cash Rate unchanged at 2.25% today. The Governor of the RB, Dr Anna Breman, delivering her first OCR announcement Monetary Policy Statement said, “.If the economy evolves as expected, monetary policy is likely to remain accommodative for some time. ‘The Committee will continue to assess incoming data carefully. As the recovery strengthens and inflation falls sustainably towards the target...
Flat month in US retail
11/2/26 Softer than expected US retail sales supported the case for Fed rate cuts which contributed to a decline in treasury yields and a stronger yen, notes BNZ Markets this morning. US retail sales were unexpectedly flat in December which was well below the 0.4% consensus estimate, says senior fixed interest strategist Stuart Ritson. “Core sales and the control group also undershot expectations. There was broad weakness across the underlying categories. The broader backdrop points to a...
Wild swings in gold and silver
3.2.26 In overnight trading, gold and silver fell to fresh lows before showing decent bounces and US equities are on a much better footing, reports BNZ Markets. “US Treasury yields have pushed higher and the USD is modestly stronger, with moves extended following a stronger than expected US ISM manufacturing survey.,” says Jason Wong, senior markets strategist “The ISM manufacturing composite rose a chunky 4.7pts to 52.6, its strongest level in over three years and well ahead of consensus...
US dollar remains under pressure
The US dollar remained under pressure overnight and made broad based losses against G10 currencies, with the dollar index falling to a four-year low, reports BNZ Markets. “The widely watched dollar index (DXY) is on track for the sharpest 4- day decline since the tariff volatility last April and has fallen to the lowest level since early 2022, comments Stuart Rition, senior fixed interest strategist. “Concerns about US economic policy and potential for FX intervention to support the yen have...
ASB adjusts interest rates
18.1.225 ASB has lifted some of its fixed home loan and term deposit rates and lowered its 6-month home loan rate to a market leading 4.65%, in response to longer term wholesale rate movements. Fixed mortgage rates are influenced by a variety of different market forces, including customer deposit rates, operating costs, the cost of overseas funding and wholesale interest rates. Unlike variable rates which are connected to the Official Cash Rate (OCR), fixed rates are more influenced by...
ANZ predict a rate cut next week
17.11.25 ANZ Bank economists expect a 25bp cut in the OCR to 2.25% by the Reserve Bank monetary policy committee on Wednesday 26 November. “We don’t expect the RBNZ to cut further next year (barring a global shock) but it would be politic to leave the door open to that possibility in order to head off a potential U-turn in monetary conditions over the summer,” said Sharon Zollner, chief economist. “The data since the RBNZ’s frontloaded 50bp cut in October have been much as the RBNZ expected....
Waiting for the upcoming OCR call
5.10.25 Banking economists are expecting the RBNZ to cut the Official Cash Rate by 25bp to 2.75% this week. ANZ Bank’s chief economist for New Zealand Sharon Zollner has noted that dovish messaging leaves open the option of a 50bp cut in November “and thereby prevents monetary conditions tightening on the day. “There are also good arguments for frontloading easing; we’d put 35% odds on a 50bp cut. “The NZIER’s Quarterly Survey of Business Opinion could move the dial if it suggests a markedly...
Air NZ raises A$300m in Aussie
24.9.25 Air New Zealand has successfully completed a A$300 million 7-year fixed-rate bond issuance under its wholesale Australian Medium Term Note (AMTN) programme. The senior unsecured notes carry a fixed coupon of 5.179% per annum representing an issue margin to benchmark of 137 basis points and mature on 30 September 2032. The issuance was well subscribed with a final order book of approximately A$2.3 billion. The transaction was open to institutional investors only and has an expected...
Auckland Airport considers making bond offers
23.9.25 Auckland International Airport is considering an offer of fixed rate bonds maturing in April 2031 to New Zealand retail investors and to institutional investors. Any such Retail Offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as Auckland Airport’s existing quoted debt securities. The bonds are expected to be quoted on the NZX Debt Market. It is expected that full details of the Retail Offer will be released the week...
