The lead in to the Asia session – US sanctions announced:
Bank of New Zealand
its official Cash Rate
25bp to 1% today.
being characterised as a ‘hawkish hike’ with some
of a 25 or 50
50bp hikes in the future are not ruled out. The Bank’s forecast
ahead for the cash rate was
significantly higher (the Bank raised its projected OCR track to
3.35% by the end of 2024, much higher than the 2.6% endpoint
predictions released at the November ‘21 policy meeting, the
meeting preceding today’s). The Bank also announced when and how
its balance sheet wind-down would commence and be handled (see
New Zealand dollar moved higher after the 0100 GMT
dipped marginally from its highs. RBNZ Governor Orr spoke at his news
conference (0200 GMT) and reiterated the potential for 50bp moves
the data front we had wages information from Australia, showing
negative real wages (wage growth slower than inflation) for Q4 2021
and also a big miss for construction completions. The miss for
construction will be a substantial negative for the Q4 GDP figures
due next week (Wednesday morning March 2, local Australian time).
flow was sedate.
was a Japanese market holiday today.
FX remained confined to small ranges only (NZD excepted, and even
that was 40-odd points only, low to high).
NZD giving a little back as I post: