July 10, 2023
The financial world is poised for some key events this week with the potential to shake up markets. Top of the agenda is the upcoming decisions from various central banks on their interest rates.
Alongside this, the focus will be on the US as it releases its latest Consumer Price Index (CPI) and Producer Price Index (PPI). These important data points could provide crucial insights into the current economic climate.
Stay tuned as we delve into what the coming week holds in store.
Reserve Bank of New Zealand Rate Statement (12 July 2023)
The Reserve Bank of New Zealand raised its official cash rate by 25bps to 5.5% during its May meeting, marking the highest level since December 2008. This was the 12th consecutive rate hike.
Analysts predict that at the upcoming meeting on July 12, the RBNZ will keep its interest rates steady at 5.5%.
US Consumer Price Index (12 July 2023)
Consumer prices in the US saw a slight rise of 0.1% in May 2023, a slowdown from the 0.4% increase witnessed in the previous month.
Analysts anticipate a 0.2% rise for June 2023 data, scheduled for release on 12 July.
Bank of Canada Rate Statement (12 July 2023)
The Bank of Canada unexpectedly raised the target for its overnight rate by 25bps to 4.75% in June 2023, after pausing the tightening campaign in the previous two meetings.
The next rate statement will be released on 12 July 2023, with analysts anticipating another increase of 25bps to 5%.
UK Gross Domestic Product (13 July 2023)
The British economy expanded 0.2% month-over-month in April 2023, rebounding from a 0.3% drop in the previous month.
For May data, set to be released on 13 July, the country’s GDP is expected to be steady at 0.0%.
US Producer Price Index (13 July 2023)
Producer prices for final demand in the US decreased 0.3% month-over-month in May 2023, following a 0.2% rise in April.
For June 2023 data, set to be released on 13 July, analysts expect a 0.2% increase.
Prelim University of Michigan Consumer Sentiment (14 July 2023)
The University of Michigan’s consumer sentiment for the US was adjusted upwards to 64.4 in June 2023, its highest level in four months, up from an initial reading of 63.9.
For July preliminary data, analysts expect a reading of 64.5.
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