China is expected to cut a key lending rate today and all eyes this week will be on Jerome Powell, who starts the Jackson Hole symposium on Friday night.
In our bonus deep-dive interview, ANZ’s Senior Australian Economist Adelaide Timbrell delves into why Australian house prices are rising again, despite the RBA’s rate hikes.
5 things to know
The People’s Bank of China is expected to cut its one-year and five-year prime lending rates by 15 basis points later today, as part of its surprise monetary policy easing from last week.
Financial markets will be focused this week on US Federal Reserve Chairman Jerome Powell’s speech on Friday night to begin the Jackson Hole symposium for global central bankers held annually in Wyoming.
Financial markets are focused on the gap opening up in economic growth rates between the United States and China, says ANZ’s Group Chief Economist Richard Yetsenga.
Japanese inflation figures were in line with forecasts on Friday. The Bank of Japan is more focused on supporting the yen, which is around 145 yen to the US dollar, says ANZ’s Head of FX Research Mahjabeen Zaman.
The People’s Bank of China has taken various steps to support the renminbi (CNH), which is under pressure because of the gap opening up between US and Chinese economic growth and interest rates, Mahjabeen Zaman said late on Friday.
Cheers
Bernard
PS: Have a great day. Look out tomorrow for more on how the PBoC is moving to support China’s economy and its currency.
