Donald Trump is set to announce global reciprocal tariffs today, but US stocks rose and US Treasury yields and the dollar fell on hopes delays could reduce the inflation hit. Japan’s rising producer prices support another BoJ hike. And the Philippines’ central bank unexpectedly holds rates.
In our bonus deep dive interview, ANZ Senior Economist Miles Workman explains the importance of New Zealand’s closely watched inflation expectations survey, ahead of next week’s live rates decision by the Reserve Bank of New Zealand.
5 things to know in 5 minutes:
US stocks rose around 0.5% and US Treasury yields fell around nine basis points on hopes Donald Trump’s global reciprocal tariffs announcement later today will leave time for negotiations to soften any inflation effects, as ANZ Economist Bansi Madhavani explains.
The UK economy dodged a recession at the end of 2024, with growth of 0.1% in the Q4, versus a flat Q3. Bansi says it does offer some comfort stagflation is not so close, but the Bank of England is likely to keep cutting.
Hong Kong’s Hang Seng equity index has performed strongly in recent sessions, buoyed by news of a leading EV battery-maker’s plans to list and AI-linked strength, says ANZ Chief Economist for Greater China Raymond Yeung
The Philippines central bank unexpectedly held its benchmark rate at 5.75% yesterday, citing global uncertainties, says ANZ Economist Arindam Chakraborty
Japan’s goods producer prices rose 4.2% from a year ago versus expectations for 4%. ANZ FX Analyst Felix Ryan says the number is the latest in a series of events pointing to further rate hikes, including strong wage growth last week.
Cheers,
Bernard
PS: Catch you next week with rates decisions from the Reserve Bank of Australia on Tuesday and the Reserve Bank of New Zealand on Wednesday.
