Ella 
In Asia on Wednesday, after the Reserve Bank of New Zealand announced its interest rate decision, the New Zealand dollar/US dollar rebounded after falling for two consecutive days and was trading around 0.6140. As inflation continues to rise and is still above the target range of 1%-3%, the Reserve Bank of New Zealand maintained the official cash rate (OCR) at 5.5% for the seventh consecutive meeting.
In the first quarter, New Zealand’s full-year consumer price index (CPI) fell to 4.0% from 4.7% in the previous quarter. The indicator recorded its lowest level since the second quarter of 2021. The decline added to speculation that the Reserve Bank of New Zealand could consider a rate cut later in 2024.
In the United States, traders are awaiting the minutes of the Federal Open Market Committee (FOMC) meeting on May 1 for signals on the Fed’s policy stance. The Fed remains cautious on inflation and the possibility of a rate cut in 2024.
On Tuesday, Boston Federal Reserve President Susan Collins spoke at the “Central Banks in the Post-COVID-19 Financial System” event. Collins said the process of responding to interest rate adjustments will take longer and stressed that patience is the right stance for the Fed.
Financial markets expect the Federal Reserve to start cutting interest rates as early as September, with two rate cuts expected before the end of the year, each by 25 basis points. The odds of the Fed delivering a quarter-point rate cut in September rose slightly to 50.3%, compared with 49.6% a day earlier, the CME FedWatch tool showed.
