Benign US inflation data sets the scene for a Fed rate cut this week. China’s exports are growing solidly. Japanese consumers spend less, but the Bank of Japan is still expected to hike. And the Reserve Bank of India cuts rates, as expected.
In our Deep-Dive interview, ANZ Group Chief Economist Richard Yetsenga explains why the Fed is still cutting, while the next moves by Reserve Banks in Australia and New Zealand (RBA, RBNZ) are expected to be hikes.
5 things to know in 5 minutes:
ANZ’s Head of G3 Economics Brian Martin expects the Fed to cut this week after innocuous Personal Consumption Expenditure inflation of 0.2% in September and falls in consumer inflation expectations in early December.
ANZ’s Chief Economist for Greater China Raymond Yeung expects China to report later today there was a 4% rise in exports in November from a year ago, and a 2.5% rise in imports.
Japanese households spent 3% less in October from a year ago, although ANZ FX Strategist Felix Ryan says the Bank of Japan (BoJ) is still expected to hike next week.
Felix says the BoJ will also be looking at Japanese GDP data for the September quarter later today, where a fall of around 0.4% for the quarter is expected.
Cheers,
Bernard.
Catch you tomorrow with a preview of the RBA decision tomorrow, which is expected to be a hold.
