Global stocks are paused on their global highs. Markets are turning their focus to a potential hike in the RBNZ’s cash rate and Australian inflation figures on Wednesday.
In our bonus deep dive interview, ANZ Pacific Economist Kishti Sen finds a lack of funding for infrastructure investment is holding back the Pacific’s economies.
5 things to know:
The Nasdaq and S&P 500 closed just off their record highs. The market’s focus is turning to Australasia’s central banks, and the RBNZ in particular, says ANZ Group Chief Economist Richard Yetsenga.
Markets see a 36% chance of an RBNZ hike on Wednesday. Richard says small open economies can buck the interest rate trends seen with bigger economies.
Australian house price growth in 2024 and 2025 is expected to slow to around 5-6% from 9.1% in 2023, says ANZ Senior Economist Adelaide Timbrell.
Australia’s annual inflation rate is expected to pick up to 3.6% in January from 3.4% in December, says Richard.
Markets will also be keeping a close eye on China’s stock markets for signs of follow-through from a tentative rally after the Lunar New Year, says Richard.
Cheers
Bernard
PS: Catch you tomorrow for a fuller deep dive interview with Adelaide Timbrell on the outlook for Australian house prices.
