BlackRock Inc. and UBS Global Asset Management say a stable central bank rate will anchor Australian bond prices, rejecting the consensus forecast of economists that yields will jump to the highest in 2 1/2 years.
Australia’s dollar gained against most of its major peers amid speculation the Reserve Bank may not cut interest rates further after Governor Glenn Stevens said there are signs that loose policy is supporting spending.
The dollar gained for a seventh day against a basket of peers, the longest streak in almost a year, as revised data in a Federal Reserve Bank of Chicago index signaled greater-than-forecast strength in the U.S. economy.
New Zealand consumer purchases on debit, credit and store cards fell in December, adding to the case for central bank Governor Alan Bollard to delay raising interest rates until the middle of the year.
New Zealand’s central bank cut its benchmark interest rate to a record low, reducing the attractiveness of the nation’s assets as officials from Beijing to London move to contain inflation by raising borrowing costs.