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RBNZ Governor Christian Hawksby said on Thursday that the cash rate was in a neutral zone and that the Bank could maintain rates at the July meeting. The FOMC minutes expressed concern about US fiscal and trade policies and signaled the Fed would remain in a wait-and-see mode. A US court has blocked President Trump's tariffs, but the US government has appealed the decision.
US equity markets posted gains after a US court blocked President Trump's tariffs. Nvidia's revenues soared higher. The Federal Reserve minutes expressed concern about Trump's fiscal and trade policy and signaled it would remain cautious.
Eurozone inflation expectations accelerated in April to 3.1% from 2.9%. Still, the ECB is widely expected to lower interest rates next week. The US Federal Reserve releases the minutes of its May rate meeting, in which it stressed a wait-and-see policy until Trump's tariff policy becomes clearer.