PREVIOUS TRADING DAY EVENTS 20 April 2023

Announcements 

According to the latest CPI data for New Zealand, the annual inflation rate declined to 6.7 from 7.2 in the final quarter of 2022. However, the numbers are still high and unlikely that they will be enough for RBNZ to think of pausing rate hikes. It is expected that the Official Cash Rate OCR will be raised by a further 25 points at the policymakers next meeting on May 24, taking it to a peak of 5.5.

Inflation is still running redhot and it remains well outside the central banks target range, said Satish Ranchhod, senior New Zealand economist at Westpac in Auckland. However, its looking increasingly likely that May will be the last rate hike in the current cycle. Inflation has fallen well short of the RBNZs forecasts for a second quarter.

Fears for recession also grow in New Zealand with the aggressive increase in borrowing costs. House prices are falling and businesses are downbeat while prices remain persistently high for some goods and services

During the last policy review on April 5, the RBNZ said demand continues to significantly outpace the economys supply capacity, thereby maintaining pressure on inflation.

Source httpswww.bloomberg.comnewsarticles20230419newzealandinflationslowsmorethanforecastinfirstquarterxj4y7vzkg

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