Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
New Zealand’s core inflation eased slightly in the second quarter, according to the Reserve Bank of New Zealand (RBNZ). The central bank’s sectoral factor model showed core inflation at 2.8% year-on-year, down from 2.9% in the previous quarter. This comes as Statistics New Zealand reported headline inflation at 2.7%, marking its highest level in a year.
Despite the uptick in headline inflation, the broader economic slowdown has led markets to reassess expectations for monetary policy. Investors are now less confident that the RBNZ will move to cut interest rates in its upcoming decision. The central bank has a long-standing mandate to maintain inflation within its 1% to 3% target range, and both core and headline measures remain within that band.
The 2.7% annual inflation figure suggests price pressures are still present, but not accelerating significantly. Meanwhile, the modest decline in core inflation could offer reassurance to policymakers aiming to balance inflation control with economic support.
The RBNZ’s next move will likely hinge on the interplay between inflation trends and weak domestic growth. With inflation now appearing stable and within target, the central bank may find room to begin loosening monetary policy—though uncertainty remains.
Monday’s data plays a crucial role in shaping expectations ahead of the next RBNZ meeting. Market participants will be closely watching for further economic signals to determine whether a rate cut is on the table. As the RBNZ navigates between inflation stability and growth challenges, its upcoming decision is poised to influence the New Zealand dollar and broader market sentiment.
