- The US CPI inflation came in at 9.1%.
- The RBNZ lifted its cash rate 50 bps from 2% to 2.5%.
- BoC raised its cash rate 100 bps from 1.5% to 2.5%.
US CPI Inflation
The US released their Inflation data for June on Wednesday, the reading came in at 9.1%, its highest rate in nearly 41 years. The rate came in higher than the 8.6% reading for May which caused the Federal Reserve to shift to a faster pace of interest rate hikes. Stocks fell in the wake of the news being released and Investors are watching closely for clues about the economic outlook for the US.
Reserve Bank Of New Zealand Hawkish
The New Zealand Dollar (NZD) edged higher on Wednesday, this change may have more to do with the retreat of the US Dollar rather than the fast monetary policy tightening the Reserve Bank of New Zealand (RBNZ) has chosen to take. The RBNZ lifted its cash rate 50 bps from 2% to 2.5% on Wednesday, reaching its highest level since 2016. Although the latest policy decision was widely expected by economists and thus fully priced-in by the financial markets, there was a limited reaction to the news for the NZD.
Bank of Canada
The Bank of Canada (BoC) surprised the markets on Wednesday by pushing its interest rates up to their highest level since October 2008, the move has outdone the Federal Reserve in its methods of bringing down local inflation. BoC raised its cash rate 100 bps from 1.5% to 2.5%.
Sources: poundsterlinglive.com, wsj.com