PREVIOUS TRADING DAY EVENTS 17 Oct 2023

New Zealand inflation slowed more than economists expected in the third quarter and this caused the market to react with NZD depreciation. Consumer prices advanced 1.8 from three months earlier, less than the 1.9 median estimate.

The RBNZ this month maintained the Official Cash Rate at 5.5 and said policy may need to be restrictive for a sustained period of time to get inflation back into its 13 target range by the second half of 2024.

We are winning the war on inflation, said Jarrod Kerr, chief economist at Kiwibank in Auckland. Todays numbers significantly reduce the likelihood of any further hikes from the RBNZ. Whatever probability there was before todays numbers, its closer to zero now.

Source httpswww.bloomberg.comnewsarticles20231016newzealandinflationslowedmorethanexpectedinthirdquarter

CPI data for Canada showed that the annual inflation rate unexpectedly slowed in September and underlying core measures also eased. Two of the Bank of Canadas BoCs three core measures of underlying inflation also decelerated. CPImedian edged down to 3.8 from 4.1 in August, while CPItrim decreased to 3.7 from 3.9.

Its pretty clear that the central bank wont be raising rates when it announces its policy decision on Oct. 25, said Jules Boudreau, senior economist at Mackenzie Investments.

At 3.8, inflation is still nearly double the banks 2 target.

Given the bleak business survey and inflation coming in below expected, look for…