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The Bank Of New Zealand Unexpectedly Maintained OCR Unchanged / UK CPI Fell To 2% In July, Worse Than Market Expectations

The Bank Of New Zealand Unexpectedly Maintained OCR Unchanged

The Bank of New Zealand unexpectedly announced to maintain the official cash rate (OCR) unchanged at 0.25% after the interest rate meeting. The market had expected the central bank to raise interest rates by 0.25%. The statement after the meeting stated that the decision to maintain the interest rate unchanged was based on the fact that there were new cases of pneumonia in the local area after half a year, and the country was entering a state of four-level lockdown. However, the central bank said that it will continue to reduce the scale of monetary stimulus for some time to come. It is also expected that the official cash rate (OCR) will rise to 0.59% before the end of the year, and to 2.14% by September 2024, indicating that the probability of interest rate hikes before the end of the year is still quite high. The Central Bank of New Zealand unexpectedly maintained the interest rate changes, disappointing the market. The New Zealand dollar exchange rate fell and fell below 69 US cents. However, boosted by the central bank's rather hawkish statement and interest rate forecasts, it quickly regained all previous losses.

UK CPI Fell To 2% In July, Worse Than Market Expectations

The UK Consumer Price Index (CPI) in July fell back to 2% year-on-year, which was lower than market expectations of 2.3%, and a decrease of 0.5 percentage points from the previous value. Affected by the slowdown in price increases such as services. However, due to the increased demand for automobiles due to the epidemic, the price of used cars has soared by 14.4% year-on-year. During the period, the core (CPI) excluding energy and food increased by 1.8% year-on-year, which was also lower than market expectations and previous values of 2.2% and 2.3%, respectively. Although inflation in the United Kingdom has fallen, the Bank of England earlier estimated that benefiting from the unblocking of the epidemic prevention order, the local annual inflation rate will climb to 4.0% before the end of the year.

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