China loosened lending rules overnight by the most in two years, sparking a rally in stocks there. Flash PMIs for the US and Europe reinforced hopes for soft landings and rate cuts.
In our bonus deep-dive interview on the eve of tonight’s ECB decision, ANZ’s Head of G3 Economics Brian Martin, reflects on the euro’s 25th anniversary.
5 things to know
China loosened its lending rules to stimulate its economy overnight, and US and European stocks surged again on hopes for central bank rate cuts soon.
Flash PMIs for the United States and Europe also supported hopes for soft landings, says Brian Martin.
NZ inflation was in line with market expectations in the December quarter and the RBNZ remains on track to keep cutting from August, says ANZ NZ Economist Henry Russell.
The ECB is likely to hold tonight, but is set to start cutting from the northern spring, says Brian Martin.
The RBNZ’s new Debt to Income limits proposed this week are designed as a guardrail to restrain another boom in house prices, writes ANZ NZ Economist Andre Castaing.
Cheers
Bernard
PS: There’s no podcast tomorrow because it’s the Australia Day public holiday, but we’re back on Monday with part two of our deep-dive interview with Brian Martin, in which he looks at whether the euro has become a true counter-balance to the US dollar as a reserve currency.
