Mr Knuckey said when reviewing interest rates, the bank considered a range of factors, including the Official Cash Rate and changes in wholesale interest rates and the need to balance the needs of borrowers and savers. In response to decreases in wholesale swap rates and the reducti...
RATESFed Funds0.25ECB Refi Rate0.25UK Base Rate0.50RBA Cash Rate2.50NZ Cash Rate2.50SWAP SPREADSSPREADWoW CHANGE US 5 Yr Swaps10.25(2.75)US 10 Yr Swaps6.75(6.69)Germany 5 Yr Swaps42.37(0.90)Germany 10 Yr Swaps28.10(0.72)UK 5 Yr Swaps21.17(0.99)UK 10 Yr Swaps(5.18)(5.29)Thisinformation...
23. Assume the following exchange rates: $1 = NZ$3, NZ$1 = MXP2, and $1 = MXP5. Given this information, as you and others perform triangular arbitrage, the exchange rate of the New Zealand dollar (NZ) with respect to the U.S. dollar should ___, and the exchange rate of the ...
across many asset markets and was an indirect channel of transmission through which monetary policy lowered sovereign and corporate bond yields, as well as contributed to a deprecation of the euro exchange rate, a rise in stock prices and an increase in inflation swap rates (Figures 5 and 6)....