OECD warns against bracket creep

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news wars and holidays are the features of today's roundup.</p><p>First up today, it is a Federal holiday in the US, <a href="https://en.wikipedia.org/wiki/Columbus_Day" target="_blank"><strong>Columbus Day</strong></a> (which is morphing into <a href="https://en.wikipedia.org/wiki/Indigenous_Peoples%27_Day"><strong>Indigenous Peoples' Day</strong></a> in a growing number of States and communities). But many businesses there don't treat it as a day-off - and that includes the stock exchanges.</p><p>Nor the currency markets of course, and the US Dollar is rising again and at a 20 year high. It is now +20% higher than a year ago. This is a sharp headwind against the on-shoring movement which is happening due to logistics pressures. It is also a sharp headwind against profits of American companies that have substantial international operations. It will only help countries hurt by a rising greenback if the domestic US economy stays healthy and imports more. So far, that has been the case. The domestic US economy remains the engine of the global economy.</p><p>In Canada, it is their Thanksgiving Day holiday.</p><p>In Ukraine, Russia is lashing out with indiscriminate bombing of population centers, using terror tactics in reaction for its invasion failures. This angry change is driving up <a href="https://tradingeconomics.com/commodity/wheat" target="_blank"><strong>the cost of wheat</strong></a>, with worries that that Russia could suspend the safe grain trade corridor from Ukrainian Black Sea ports that was agreed to in an UN-brokered deal. Prices have risen +15% in a month.</p><p>In England, their central bank <a href="https://www.bankofengland.co.uk/news/2022/october/bank-of-england-announces-additional-measures-to-support-market-functioning" target="_blank"><strong>expanded it