New Zealand's central bank maintained its benchmark rate for the seventh consecutive session and signaled a delay in rate cuts as services inflation is receding slowly.
Sterling climbed broadly today after data showed that UK disinflation progress was slower than anticipated, with services inflation remaining persistently high. This development dashed hopes for an imminent rate cut by BoE, causing the odds of a rate cut in June to plummet from around 50% to below 20%. Despite this, the notable declines in both headline and core CPI keep the possibility of a rate cut at the BoE's August meeting alive.
The Reserve Bank has held the Official Cash Rate (OCR) unchanged at 5.5 per cent, saying inflation is falling and should be back at target by the end of.