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Take Five: Interest rate lift-off ahead

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LONDON, Aug 12 (Reuters) – Below are five events and themes likely to dominate global financial markets next week.

1/ READY, STEADY, GO

New Zealand’s central bank meets on Wednesday and looks set to become the first major economy to lift interest rates since COVID-19 hit.

Super-strong jobs data have cemented expectations of a hike, which would be New Zealand’s first since mid-2014. What a contrast with 2020, when rates were slashed 75 bps to 0.25% and a move below zero became a real possibility.

Norway’s central bank, meeting on Thursday meanwhile, could reiterate it will increase rates in September.

Investors, focused on prospects for Fed tapering as labour conditions improve, have boosted the dollar. New Zealand and Norway are a reminder that the greenback is not the only currency standing to benefit from the monetary policy shift under way in the G10.

– New Zealand inflation expectations jump in Q3 -RBNZ

Reuters Image

2/ MALLRATS

The U.S. economy is growing…

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