The US Government shutdown cancels the release of key US jobs data. ANZ Research has raised its inflation forecast for Australia, and now sees the Reserve Bank of Australia delaying its final rate cut until February from November.
In our Deep-Dive interview, ANZ Senior Rates Strategist Jack Chambers explains where Australian inflation is up, and why the RBA is likely to wait until after Christmas.
5 things to know in 5 minutes:
Jack says the non-release of US non-farm-payrolls data on Friday means the Fed will find it harder to determine how the US economy is travelling.
He says ANZ Research still sees the Fed cutting at the next four meetings.
ANZ Research has increased its forecast for Australia’s trimmed mean inflation in the September quarter to 0.9% from 0.7% and changed its view on the RBA’s last rate cut to February from November.
Japan is about to get its first woman PM, Sanae Takaichi, who is seen as more reluctant than the Bank of Japan about hiking interest rates, which may weaken the yen, says ANZ Head of FX Research Mahjabeen Zaman.
Mahjabeen expects the Bank of Japan to be cautious for now, with the new PM unlikely to be formally elected by the Parliament and sworn in until later in October.
Cheers,
Bernard.
PS: Catch you tomorrow with a full preview of the Reserve Bank of New Zealand’s expected rate cut on Wednesday. Will it be 25 basis points or 50?
