i

Daily Alert: FED hikes by 50bps with more to come. RBNZ to follow suit

  • As was widely expected the FOMC hiked the federal funds rate by 50bps (0.75%-1.00%), with Chair Powell signalling 50bp hikes “should be on the table” in the next couple of meetings
  • US interest rates and the USD fall while stocks rise as markets pare back the likelihood of more aggressive FOMC tightening
  • We continue to expect a 50bp RBNZ OCR hike in May with yesterday’s Q1 labour market data confirming an extremely tight labour market and signs of rising inflation

Contact us

Other reports