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Eurozone rate cuts questioned as German wages rise

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Line chart of negotiated nominal wages versus inflation in Germany showing that German workers have not yet regained their pre-pandemic purchasing power

Wages in the eurozone’s biggest economy are rising at their fastest pace this century, fuelling concerns among some economists about the European Central Bank’s expected interest rate cut next month. Negotiated wages in Germany are expected to jump 5.6 percent in 2024, based on agreements reached between January and June, according to data published Tuesday … Read more

New Zealand cuts rate for first time in more than four years, eyes further easing, Kiwi dollar plunges By Reuters

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© Reuters. FILE PHOTO: A view of an entrance to the Reserve Bank of New Zealand in Wellington, New Zealand, November 10, 2022. REUTERS/Lucy Craymer/File Photo

By Lucy Craymer WELLINGTON (Reuters) – New Zealand’s central bank cut its benchmark rate for the first time since March 2020 and announced further cuts in coming months, saying inflation was moving closer to its 1% to 3% target in a marked dovish tilt that prompted a sell-off in the dollar. The decision to cut … Read more