Reserve Bank of New Zealand:


The RBNZ hiked their cash rate target for a ninth consecutive meeting today. It was by the largest amount ever, a 75bp hike. This takes the Official Cash Rate (OCR) from 3.5% to 4.25%. The Bank issued a hawkish forecast for the path ahead. ANZ in New Zealand are tipping a 5.75% peak OCR, which is still 150bps away. The Reserve Bank of New Zealand next meet in 3 months time, on February 22. In the meantime, Merry Christmas, especially if you have a floating rate mortgage in New Zealand. Ugh.

NZD/USD is higher for the session, although its off a little from the peak seen after the RBNZ announcement. Elsewhere across major FX EUR/USD is an outperformer also. Ranges across major rates have remained small this pre-FOMC minutes session. The minutes from the Federal Open Market Committee (FOMC) November 1 and 2 meeting are due at 1900 GMT.

Regional stock markets were subdued also. Japanese markets were closed for a holiday. As I update this post Hong Kong’s Hang Seng is around +0.5%, Shanghai Composite is barely changed.

In crypto news, New York Governor Kathy Hochul signed into law a two-year moratorium on proof-of-work (PoW) cryptocurrency mining. This is intended to address some of the environmental concerns (massive mining power use) around cryptocurrencies. Its quite restrictive.


nzd wrap 23 November 2022