Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Central banks preview: RBNZ and BoC

The Reserve Bank of New Zealand is expected to keep interest rates unchanged, while the Bank of Canada is seen raising rates by a quarter point. IGTV’s @AngelineOng takes a look at what’s driving the moves by both central banks.

Video poster image

(Video Transcript)

Central banks on rates

Central banks continue to hog the spotlight this week with interest rate decisions from New Zealand and also Canada.

RBNZ

Let's start off with New Zealand. Ater hiking by 25-basis points at its last meeting and taking the official cash rate (OCR) to its highest level in nearly 15 years, the Reserve Bank of New Zealand (RBNZ) is very likely to stay put this month, keeping the OCR at 5.5%.

After its last position the bank said it was seeing soaring costs peaking at that level.

BoC

Now the situation is different in Canada. The Bank of Canada (BoC) unexpectedly hiked by 25-basis points in June and on Wednesday the bank is seen adding another quarter of a percentage point to its overnight rate, taking it to 5%.

Concerns about inflation have risen in recent weeks, and if headline inflation has been almost constantly falling since June last year, well, core inflation appears to be stickier. Core CPI has also been falling, but at a slower rate than the main index.

For more videos from us here at IGTV, join us on Twitter at IG.com, Instagram and subscribe to our YouTube channel.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.