Bank of New Zealand’s Post

📰 While the Official Cash Rate remaining unchanged was not unexpected for many, there was something surprising in the announcement this week according to our partner Bank of New Zealand! Check out the short video below for their thoughts on the recent announcement and what it actually means for Kiwis.

Check out what BNZ’s Chief Economist Mike Jones has to say about the RBNZ's latest OCR announcement!

U.S. regional banks' deposit costs may have already peaked now that interest rates are declining. Get our banks team's latest thinking on the new rate environment and what it means for the industry. https://lnkd.in/ebar89M2 #Equity #Fed #InterestRates

Commercial banks are poised to make trading gains as the yield on the benchmark 10-year government bond fell by 14 basis points (bps) in the January-March quarter to settle at 7.06 per cent on the last trading day of the fourth quarter.

Policy interest rate The Bank carries out monetary policy by influencing short-term interest rates. It does this by adjusting the target for the overnight rate on eight fixed dates each year. https://lnkd.in/gqN8-4bN

A more taut collaboration between the SARB and SA government would be ideal in solving growth and inflation issues given that we are aware of what is causing the slow growth and upper range inflation rate. Monetary policy would be more effective(rather than reactionary)if Government took progressive measures in solving issues outlined by the MPC.

The MPC noted a recent shift in core inflation from goods to services inflation lead by Health Insurance. Supply side constraints by way of electricity loadshedding and inefficiencies in ports and rail placed pressure on economic output. They expect loadshedding to improve as also communicated by government which should provide reprieve for a compressed economy. The current hot and dry weather conditions are a major risk as they are likely to have an impact on output and goods inflation pouring cold water on the hopes of SA's economy.   The inflation target midpoint is expected to be reached by the end of 2025. The MPC is however projecting 50bps of cuts in 2024? The 'dovish' stance aligns with major economies in defiance of elevated inflation although SA local inflation is running wider than most, close to the top end of the target range as of the recent data print.   Recent bouts of inflationary pressure have necessitated that rates remain high (hopefully high enough). The MPC considers the current rate to be restrictive.   It has acknowledged that the current forecast provides very little margin to absorb inflationary shocks (but it seems to be still palatable).   A cautious statement overall with a better growth outlook largely from better expected economic conditions. Inflation is the main stumbling block but should cuts materialise in the major economies that will give room for cuts as that will provide reprieve by way of the exchange rate. As things stand, rate cuts do not make any sense. Advanced economies are seemingly looking to drift inflation and not exclusively look to their targets. I suspect we may be headed in the same direction. This should bode well for emerging markets and global economic growth.

Nikkei Asia interviewed me to discuss the challenges and outlook for Southeast Asian banks as the rate-cut cycle begins. In this new article, I share my insights on what lies ahead for banks in Singapore, Thailand, Indonesia, Malaysia, and across the region as they navigate this shifting economic landscape. Nikkei Asia DBS Bank UOB OCBC #singapore #thailand #malaysia #indonesia #philippines #banks #interestrates #usa #trump

The Reserve Bank's decision to cut the OCR by 50bp feels like a necessary (and overdue) move given the economic slowdown.  This should provide some relief to borrowers that have fixed short-term or are on floating.  It’ll be interesting to see how this plays out, and whether they decide to cut further in November... 🤔

Tougher Capital Rules For Regional Banks Means More Pressure On CRE Lending Fed rate cuts will help, but it's unclear how much more the banks can expect in the future. Read more at https://lnkd.in/epTnvGri #cre #creinvestment #sperrycga #sperrycommercialglobalaffiliates #InternationalRealEstatePartners #IREP