November Statement News Today

lets get down to business. an australian firm — recharge industries — has come to the rescue and bought the battery maker britishvolt out of administration. the deal is expected to be announced shortly. britishvolt had plans to build a £4 billion gigafactory near the port of blyth in northumberland, but it ran out of money and collapsed last month. its downfall was blamed on a lack of battery experience, unproven technology, and therefore no customers oi’ revenue. the new owner ...

Today's RBNZ update leaves us comfortable for now with our forecast of a first policy easing in February next year, followed by only gradual policy easing thereafter. Future inflation data will be key in driving our OCR view with the risk that easing comes later than currently expected.

Westpac economics sees the RBNZ leaving the OCR at 5.5% at the February Monetary Policy Statement and adopting a hawkish outlook for the OCR.

Expectations have fluctuated wildly in New Zealand since the RBNZ November Monetary Policy Statement. Back then the RBNZ surprised almost all with the threat of further tightening in 2024 if inflation pressures didn't recede fast enough. Central to their thesis was concern that:

Australian shares are set to open largely flat. US March rate bets pared. Microsoft and Alphabet beat expectations. Headline inflation figures awaited. Follow updates here.

As we expected, the RBA Board kept rates on hold following its December meeting. Information received since the previous meeting in early November was considered ‘broadly in line’ with their expectations. The Governor’s decision statement emphasised that inflation continues to moderate, driven by the goods sector. Ahead of its meeting in February 2024, the Board will be focused on the December quarter CPI result. If inflation does not decline as the RBA intends, the Board will respond with...

This week, the RBA Board opted to raise the cash rate by 25bps to 4.35%. As detailed by Chief Economist Luci Ellis, this decision marked a direct response to persistence in inflation and upside risks to the outlook. The underlying tone of the real economy has shifted in recent months, the household sector exhibiting resilience against intense interest rate and cost-of-living pressures. This has, in part, contributed to the more worrisome inflation outlook, with the Board noting that “the price...

As we expected, the RBA Board raised the cash rate target by ¼ percentage point to 4.35%. Their inflation outlook is stronger, and so is their outlook for the labour market. But follow-up increases in rates are far from assured.

The big question is whether the RBA can resist political interference to lift the cash rate in November.

RBA Governor Michele Bullock knows that excessive rate rises historically cause a recession and it’s why she shouldn’t even think of more rises.