Faster-than-forecast deflation in China is raising expectations of more stimulus. The Reserve Bank of India held overnight, but more hawkishly than expected. The chances of the Reserve Bank of New Zealand hiking in three weeks is rising.
In our bonus deep dive interview for the Lunar New Year, ANZ Chief Economist for Greater China Raymond Yeung looks at China’s energy transformation in the ‘fire era’ out to 2043, and what that means for the rest of the world.
5 things to know
China’s prices fell 0.8% in January from a year ago, the largest fall since September 2009. ANZ’s Chief Economist for Greater China, Raymond Yeung, says weak domestic demand is driving broad deflation.
The data has prompted expectations of greater stimulus from Chinese authorities, who also face depressed stock and property markets, Raymond says.
ANZ NZ Chief Economist Sharon Zollner says market expectations for a RBNZ rate hike on February 28 could head towards 50%.
ANZ’s Truckometer series is showing strong population growth has been masking broader economic weakness in New Zealand, Sharon says.
The RBI held its policy rate as expected last night, but was more hawkish than expected in its comments, says ANZ Economist Dhiraj Nim.
Cheers
Bernard
PS: Look out on Monday for a preview of a big speech next week by Reserve Bank of New Zealand Governor Adrian Orr.
