The Reserve Bank said it is committed to maintaining highly-supportive monetary conditions to achieve its objectives of a return to full employment in Australia. Ceasing purchases under the bond purchase programme does not imply a near-term increase in interest rates.
As the bank has stated previously, it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. While inflation has picked up, it is too early to conclude that it is sustainably within that band, and wages growth is modest.
The bank has forecast underlying inflation to reach three and a quarter per cent this year before falling to two and three quarters per cent next year as supply-side problems are resolved.
At home, market leader Fisher and Paykel Healthcare rose $1.25 or 4.5 per cent to $29 on trade worth $26.41m; Mainfreight gained $1.35 to $84.85; EBOS Group was up 38c to $39.28; PGG Wrightson increased 17c or 3.16 per cent to $5.55; and Skellerup Holdings collected 10c to $6.
Meridian Energy increased 14c or 3.21 per cent to $4.450 after confirming the sale of its Australian business for A$740m ($795m) to a consortium of Shell and Infrastructure Capital Group (ICG). Amongst other energy companies, Genesis was up 7c or 2.62 per cent to $2.74.
Chorus was up 5c to $7 after S&P Global Ratings increased the telecommunications firm's credit rating threshold, saying "the stable outlook reflects our expectations that Chorus will maintain its solid network position and earnings." S&P reaffirmed Chorus' rating of BBB, and the credit rating lift gives Chorus greater ability to pay dividends.
Apple exporter Scales Corporation surged 28c or 5.82 per cent to $5.09; SkyCity Entertainment rebounded 7c or 2.56 per cent to $2.80; and Sky Network Television was up 7c or 2.9 per cent to $2.48.
AMP gained 5c or 5.38 per cent to 98c; Heartland Group Holdings increased 6c or 2.54 per cent to $2.42; and Argosy Property picked up 4c or 2.68 per cent to $1.47.
NZME rose 7c or 5.79 per cent to $1.28; Move Logistics gained 6c or 3.9 per cent to $1.60; Vulcan Steel collected 19c or 1.92 per cent to $10.10; DGL Group increased 12c or 4.23 per cent to $2.96; Harmoney was up 4c or 2.25 per cent to $1.82; and Gentrack rose 8c or 4.44 per cent to $1.88.
Amongst the retirement village operators, Arvida increased 5c or 2.94 per cent to $1.75; Ryman Healthcare was up 12c to $10.02; and Summerset Group Holdings was down 12c to $12.08.
Synlait rose 19c or 6.03 per cent to $3.34. Last week Synlait increased its milk price forecast to $9.25/kg milk solids, up from $8, saying dairy commodity prices have strengthened significantly as strong global demand has outrun restricted supply.
Radius Residential Care increased 2.5c or 5.88 per cent to 45c on the day Andrew Peskett, formerly with Metlifecare, started as the new chief executive.
ikeGPS Group gained 1c to 82c after reporting strong growth in the nine months ending December. Revenue rose 53 per cent to $9.9m compared with the previous corresponding period, and new contracts closed in the third quarter totalled $7m, up 180 per cent.
New Zealand King Salmon Investments plunged 14c or 11.57 per cent to $1.07 after telling the market it is experiencing higher-than-expected sea farm mortality because of the warmer water, resulting in a lower harvest. NZ King downgraded its full-year operating earnings (ebitda) forecast to $6.5m-$7.5m, from $10.5m-$12.5m.
Other decliners were Briscoe Group, down 12c or 2.02 per cent to $5.82; Marsden Maritime Holdings decreasing 9c to $6.20; and Solution Dynamics falling 15c or 5.36 per cent to $2.65.
