Asia Summary and Highlights 18 Feb
RBNZ Kept Rates at 2.25%
Asia Session
The RBNZ kept rates unchanged at 2.25% as expected. They believe the current overshooting CPI will return to target range in this quarter and no change to see it at mid range in 2027. Their forecast to inflation is balanced and likely see no revision needed now. NZD/USD is trading 0.86% lower at 0.5997.
Australian Q4 Wage Price Index bangs in estimate at 3.4% y/y. It continues to point towards solid wage growth, but given the current red hot inflation number, it may not be enough to support real wage development. The broader risk mood is still undecided and see the Aussie succumbed to stronger USD. AUD/USD is trading 0.29% lower at 0.7065. Else, USD/CAD is up 0.12%, EUR/USD is down 0.08% and GBP/USD is down 0.07%.