Bank of New Zealand Keeps Interest Rates Unchanged
The Bank of New Zealand held its policy meeting yesterday. After the meeting, the interest rate remained unchanged at 0.25%, in line with analysts’ expectations. In its statement, the central bank stated that it will maintain a loose monetary policy until inflation returns to 2%. Regarding the New Zealand dollar exchange rate, the bank said that recent exchange rate changes have offset some of its policy support. The implication seems to point to the New Zealand dollar being too high, but its remarks are still relatively moderate.
Germany’s GDP Rose by 0.3% in 2020 Q4
Germany’s gross domestic product (GDP) increased by 0.3% in the fourth quarter of last year quarter-on-quarter, better than the initial increase of 0.1%, mainly due to rising exports and strong construction sectors. On an annualized rate, German GDP contracted by 3.7%, which was also narrower than the initial value of 3.9%. In 2020, Germany’s GDP still contracted by 4.9% year-on-year, which was narrowed from the initial value of 5.3%. The data reflects that although the country has implemented lockdown measures since November of last year, it has yet to have much impact on the local economic prospectus.