February 28, 2024

New Zealand Policy Rate 5.5% (consensus 5.5%) in Feb-24

  • The Reserve Bank of New Zealand's decision to maintain the OCR at 5.50% is predicated on a strategic imperative to curb inflationary pressures amid a complex interplay of domestic capacity easing and sustained global economic challenges.
  • Global economic uncertainties, coupled with geopolitical and environmental risks, notably in shipping costs, present nuanced inflationary pressures that the MPC is poised to address through sustained restrictive monetary policy.
  • The ongoing assessment of fiscal policy impacts, alongside the vigilance towards domestic and global economic developments, will critically inform the MPC's future policy decisions, underscoring a commitment to steering inflation towards the target range while fostering economic stability.

February 26, 2024

Japan CPI 2.2% y-o-y in Jan-24

- Japan's Consumer Price Index (CPI) grew at a slower rate of 2.2% year-on-year in January 2024, marking the lowest growth since March 2022.
- Excluding fresh food, Japan's CPI rate was 0.2 percentage points above consensus expectations at 2.0% year-on-year.

February 23, 2024

Singapore CPI Inflation 2.9% y-o-y (consensus 3.8%) in Jan-24

- Singapore's CPI inflation rate in January 2024 plummeted to 2.9% y-o-y from 3.7%, much lower than the consensus forecast for a slight rise to 3.8%.
- The inflation rate of is 1.62pp below the one-year average, indicating a period of easing price pressures. Most of the downside news was in the core.

February 22, 2024

Korea Policy Rate 3.5% (consensus 3.5%) in Feb-24

  • The Bank of Korea's decision to maintain the Policy Rate at 3.5% reflects a careful balancing act between controlling inflation and fostering economic growth amidst significant domestic and global economic uncertainties.
  • Future interest rate decisions will be significantly influenced by the trajectory of inflation, the state of the global economy, including major economies' monetary policies, commodity price movements, and geopolitical developments.
  • The bank's policy formulation will continue to prioritize financial stability, closely monitoring domestic economic indicators, financial and foreign exchange market dynamics, and household debt trends to guide its approach to achieving medium-term inflation targets.