Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – RBNZ, Bank of Canada, Employment

Thursday, 14th April, 2022

Daily Flows

  • After increasing their NCD margins on Tuesday, Judo Bank (A-3/BBB-) went on to raise their term deposit rates yesterday, now offering the highest in the market across many terms. 1.25% is available for 6-month funds, and 2.00% for 12 months (the first ADI since pre-covid to hit 2%!).
  • The NAB 6-month rate is proving popular amongst investors (behind only Judo) as majors continue to offer very competitive levels.

RBNZ & BoC

  • The RBNZ hiked by 50 points yesterday, with the cash rate now resting at 1.50%.
  • The hike was the the largest in 22 years, and was in response to strong inflation worries.
  • Inflation is now at 32-year highs in NZ, which has caused the RBNZ to hike by 125 points since October.
  • Similarly, the BoC hiked by 50 points yesterday and announced that asset purchases will be terminated later this month.
  • Quantitative tightening is now the norm for central banks across the globe. Whilst QT has been done before, there is little evidence on the possible outcomes at this scale.

Employment Data

  • Australian Employment Data is out today. The market is expecting unemployment to fall to 3.90%.
  • Only an increase of 30,000 jobs is expected, but the participation is also expected to increase to 66.50%.
  • This print will be closely watched by the market and the RBA.
  • Market pricing may be somewhat subdued with the print falling the day before a long weekend. From all the team here at Curve Securities we hope you have a wonderful Easter break!

Nicholas Allan

Associate - Money Markets