China’s inflation rates are higher than expected, but not enough to stop more easing. The US dollar is rising with higher US growth expectations, for now. And Philippines’ GDP is much weaker than forecasts.
In our Deep-Dive interview, ANZ’s Chief Economist for Southeast Asia and India, Sanjay Mathur, explains why consumers in the region have responded so weakly to rate cuts this time around.
5 things to know in 5 minutes:
China reported Consumer Prices rose 0.2% in October from a year earlier, when economists had expected it to be flat. The inflation came from the price of jewellery, reports ANZ’s Senior China Strategist Zhaopeng Xing.
Zhaopeng says inflation may be up, but consumer demand remains weak and it doesn’t stop the Peoples Bank of China from needing to ease again, possibly in December after some key policy meetings.
The US dollar has risen in recent weeks because of a rerating upwards of growth expectations and interest rates. ANZ Head of FX Research Mahjabeen Zaman says that pressure remains in the short term.
But Mahjabeen sees the US dollar reversing closer to the end of the year.
Phillippines GDP data on Friday was much weaker than expected. GDP rose 4.0% in the September quarter from a year ago, when the market had expected more like 5.3%. ANZ Economist Arindam Chakraborty says governance issues pushed Government spending lower, with a recovery not likely any time soon
Cheers,
Bernard.
PS: Catch you tomorrow with a preview of Australia’s labour force data due on Thursday.
