The Reserve Bank of New Zealand (RBNZ) heads into this week's Monetary Policy Review to decide on the Official Cash Rate (OCR), which is generally expected to be a hike of 25bps.

Analysts at TD Securities hold their call on a 25 basis points (bps) hike in July, conceding that the RBNZ may hike rates slower than forecast in April. However, they flagged that the hike may still leave monetary policy too accommodative, as GDP/inflation outcomes have tracked “well above Bank forecasts” since the 75bps cuts in October and November last year.

Similarly, HSBC Economist Maitreyi Das noted that recent economic data have pointd to stronger-than-expected growth and firmer inflation. While GDP growth is expected to moderate in Q2, HSBC anticipates economic activity to recover by the second half of the year supported by developments following the recent US-Iran conflict. As a result, the bank forecasts a 25bp rate hike, describing it as “one step towards policy normalisation.”

(Continue Reading – LiveSquawk)

The Trump administration on Tuesday revoked the temporary waivers it issued as part of the memorandum of understanding with Iran that allowed Tehran to sell oil, the Department of Treasury announced.

Why it matters: The revocation of the waivers that was issued less than three weeks ago is in response to the renewed Iranian attacks against ships in the Strait of Hormuz over the past 24 hours.

(Continue Reading – Axios)

Five NATO members are projected to meet the alliance's goal of spending 3.5% of gross domestic product on core defence ​already in 2026, according to updated NATO data published ‌on Tuesday ahead of a leaders' summit in Ankara, which also showed some members are still expected to spend only about 2%.

At a summit in The ​Hague last year, NATO leaders pledged to spend 3.5% of ​GDP on core defence items such as weapons and ⁠troops by 2035 - up from a previous goal of 2%.

(Continue Reading – Reuters)

SK Hynix Inc.’s $28 billion US listing is multiple times oversubscribed ahead of pricing on Thursday, according to people familiar with the matter.

The South Korean memory chipmaker’s offering has drawn strong early demand from global long-only funds and technology-focused investors, the people said, asking not to be identified because the information is private.

(Continue Reading – Bloomberg)

Bank of Japan board member Toichiro Asada said he must see signs of demand-driven inflation before supporting interest rate rises, ​but flagged "relatively rapid" pass-through of higher costs in a sign he may vote in favour of a hike in the future.

Asada, the sole dissenter to the BOJ's decision in ‌June to raise interest rates to a 31-year high of 1%, made the comments in his first interview since joining the board, underscoring a growing tension between political pressure for loose policy and mounting inflationary pain as firms pass on rising costs.

(Continue Reading – Reuters)