Previous Trading Days Events 22.05.2024

RBNZ The Monetary Policy Committee agreed to keep the Official Cash Rate at 5.50. Its restrictive monetary policy has reduced capacity pressures in the New Zealand economy and lowered consumer price inflation. Annual consumer price inflation is expected to return to within the Committees 1 to 3target range by the end of 2024.

Globally, consumer price inflation has declined from 30year highs in many advanced economies. However, services inflation is receding slowly, 

New Zealands labour market pressures have cooled. Wage growth and domestic spending are easing to levels more consistent with the Committees inflation target. 

Source 

httpswww.rbnz.govt.nzmonetarypolicymonetarypolicydecisions

U.K. Inflation eased less than expected and a key core measure of prices barely dropped, boosting expectations for a rate cut soon. The consumer price index CPI rose by 2.3 in the 12 months to April, down sharply from Marchs 3.2 increase and its lowest since July 2021.

Services inflation was much higher than expected, and petrol prices rose. It inched down to 5.9 from 6.0 in March.

This is only one months data, but it is enough of a surprise to suggest that the inflation process is not tracking as the BoE had expected, Allan Monks, chief UK economist at JP Morgan, said.

There is still another labour market and CPI report to come before the June meeting, but it is difficult for us to see what that could realistically do to leave most…