Daily Commentary BY THE CURVE TEAM –

Daily Insights – New Zealand Hike Rates

7th of October, 2021

RBNZ Rate Hike

  • The cash rate was lifted 25 points in New Zealand as expected to 0.50%.
  • Inflation is expected to be 4% by year end before falling back to 2-3% over the medium term.

CBA Short Term FRN

  • CBA printed over half a billion of a year FRN at +9.

3 Year Rates Up

  • Major bank fixed bonds are trading at around 0.85%.
  • Term deposits are offering from 0.80-1.05%.
  • This is evidence of a steepening curve, in contrast to the very flat curve for the past year.

Josh Stewart

Associate - Money Markets