Week Ahead – BoC and RBNZ to hike big, ECB to bide its time
XM Group | Apr 08, 2022 08:52AM ET
Will the RBNZ get the 50-bps ball rolling?
The Reserve Bank of New Zealand will kick off next week’s central bank meetings early on Wednesday but perhaps a more relevant point is that it could become the first to raise interest rates by a larger 50 basis points. Having lifted rates three times already, there’s a good chance the RBNZ will opt for a bolder increase in April.
The retail sales report comes out on Thursday and the projections are for a month-on-month increase of 0.6%. Also of importance will be the University of Michigan’s preliminary read on consumer sentiment for April and industrial production for March on Friday.
The dollar could firm a little from a solid set of numbers, but with markets already betting on a very aggressive Fed, it’s questionable how much further it can climb without the added safe-haven boost from any deterioration in the geopolitical landscape. That leaves the greenback slightly exposed to a small downside correction from any surprise softness in the data.
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