As widely expected, the RBNZ held the policy rate steady at 3.25%. This was in line with the sell-si...
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China asset markets aren't showing a strong reaction to the May inflation data. To recap, the CPI remain in deflation, albeit slightly above market expectations (-0.1%y/y, versus 0.2% forecast). The PPI continued to show worsening deflation at -3.3%y/y (-3.2% was forecast and prior was -2.7%). USD/CNH is down slightly, last near 7.1845/50. Broader USD sentiment is struggling to hold Friday's gains, the BBDXY last down 0.20%, which is likely aiding CNH, albeit with the usual lower beta.
China’s May CPI inflation remained weak at -0.1% y/y, slightly better than consensus expectations, while core picked up 0.1pp to 0.6% y/y, the highest since January. Producer prices deteriorated further falling 3.3% y/y after -2.7% in April and the weakest since July 2023, signalling some possible upcoming downward pressure on headline inflation. Services & manufacturing PMIs signal a further softening in prices.
China CPI vs PPI y/y%
Source: MNI - Market News/LSEG
China has approved a number rare earth export applications and will enhance communication with relevant countries, a spokesperson from the Ministry of Commerce said on Saturday. The ministry emphasised that implementing controls on rare earths, which have both civilian and military applications, aligns with international practices. The ministry was willing to establish a green channel and accelerate approvals to European Union firms. (Source: Securities Times)