Daily outlook for NZ rates

May 13, 2015 20:47 pm UTC| Commentary

Westpac Research Notes:NZ swap yields 1 day: Given the movements in interest rates in key markets overnight, the NZ 2yr should open down 1bp at 3.41% while the 10yr should open up 1bp at 4.01%.NZ swap yields 1-3 month:...

US consumption weakness extends into Q2

May 13, 2015 20:20 pm UTC| Commentary

US retail sales for April were weak. Control retail sales (excluding gasoline, autos, building materials and food) were flat and sales excluding autos and gasoline were up only 0.2% m/m.Headline retail sales were also...

Strong performance of UK labour market continued into March

May 13, 2015 18:46 pm UTC| Commentary

UK employment rate is up to a new record high. Granted, a strong expansion in the workforce meant that unemployment fell by just 35,000 - the smallest fall since August 2013. But this was still sufficient to bring the ILO...

Iceland’s central bank to raise rates at June meeting, further hikes to follow

May 13, 2015 18:33 pm UTC| Commentary

Although Icelands central bank left its main interest rates on hold on Wednesday, it adopted a much more hawkish tone, signalling that it was likely to start hiking rates as early as next month.Strong domestic demand and...

Euro-zone economy grew more rapidly than the US and UK in Q1

May 13, 2015 18:19 pm UTC| Commentary

Q1s euro-zone GDP data confirmed that the currency union expanded by 0.4%, stronger than the performances of the US and UK economies but slightly below consensus.Although France grew by a solid 0.6% - its biggest quarterly...

Weakness on the horizon for sterling

May 13, 2015 18:03 pm UTC| Commentary

Even though BoE lowered UK growth forecasts for the next three years, sterling appreciated further against the dollar on Wednesday, so the exchange rate is now up nearly 8 cents over the past month (1.57 vs. 1.49). Two...

BoE Inflation Report confounded market fears of a more hawkish policy message

May 13, 2015 17:53 pm UTC| Commentary

The revisions to the macro forecasts were uncontroversial. Inflation is a little higher this year to reflect the higher oil price but then is lower in the middle part of the forecast.The growth forecast was lowered...