Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
The Reserve Bank of New Zealand (RBNZ), at its monetary policy meeting, held late Tuesday decided to keep the Official Cash Rate (OCR) at a record-low of 1.15 percent while sticking to its neutral underlying tone and made slight changes to its guidance on future monetary policy.
The central bank mentioned that monetary policy is expected to remain accommodative for a long time, in order to support growth and guide inflation towards the RBNZ’s target on a sustained basis. However, while the RBNZ acknowledged the recent softer data, it held the line on just about every aspect of its forecasts. The projected OCR path was identical to the May Monetary Policy Statement, with a flat track for the next two years before a gentle upturn.
Weak global inflation pressures and a high New Zealand dollar mean that tradable inflation is expected to remain soft. That puts the burden on higher domestically-generated inflation, in order to keep overall inflation on target. The RBNZ believes that low-interest rates will achieve this, but needs time to do achieve their work. On that basis, market expectations for OCR hikes in the second half of 2018 seem misplaced as of now.
Meanwhile, the NZD/USD has slumped to a near 1-month low in the European session, taking cues from RBNZ’s Assistant Governor McDermott’s comments post the policy statement. At 08:50GMT, the kiwi traded 1.33 percent lower against the greenback at -0.0097.
