The Swiss National Bank surprises with a rate cut. The Bank of England holds as expected, and New Zealand exits recession…just.
In our bonus deep dive interview, ANZ FX Analyst Felix Ryan explains how the outlook for monetary policy in Japan has evolved during the quarter.
5 things to know:
Global stocks are receding from new record highs in late trade, and bond yields have bounced from 2024 lows. Meanwhile, the Bank of England held as expected, but the Swiss National Bank cut again unexpectedly overnight, says ANZ Economist Bansi Madhavani.
New Zealand’s economy exited recession in Q1, growing 0.2%, GDP data showed yesterday. ANZ Economist Miles Workman says the details were a touch softer than expected, which is good news for the RBNZ’s fight to wrangle inflation lower.
China’s main banks have held their ‘best offer’ 1-year and 5-year loan prime rates steady in June. There had been speculation they may fall in coming months. ANZ Senior China Strategist Zhaopeng Xing is expecting rate cuts from Q3.
Bank Indonesia kept its policy rate on hold as expected at 6.25% yesterday, despite speculation it could hike again to defend a weak currency, says ANZ Economist Krystal Tan.
Taiwan export orders rose a stronger-than-expected 7% in May from a year ago. Bansi credits double-digit growth in demand for AI chips.
Cheers
Bernard
PS: My colleague Alex Tarrant will be our host next week with a look at proposed changes to how China conducts monetary policy. I’m having a mid-winter break.
