The FOMC held the Fed funds rate as expected, but has raised its ‘dot plot’ track by around 25 basis points in 2025. UK inflation slowed in February, but the Bank of England is still expected to hold. Japan’s authorities are watching a weak yen closely around 151/US$. NZ GDP data may show the economy in a technical recession.
In our bonus deep dive interview, ANZ Senior Economist Blair Chapman looks at why Australian job seekers are holding off starting new jobs in January.
5 things to know:
The FOMC held the Fed Funds Rate in the current 5.25% to 5.5% range and still sees three cuts later this year, but it has taken one of the previously projected cuts for 2025 out of its ‘dot plot’, says ANZ Head of G3 Economics Brian Martin.
Annual UK CPI inflation fell to 3.4% in February from 4% in January, the slowest rate since 2021 and less than forecast. However, ANZ Economist Bansi Madhavani says the Bank of England is still set to hold tonight.
The Yen slid well past 151 to the US dollar overnight. Japanese authorities may comment about its weakness at these levels, says ANZ Head of FX Research Mahjabeen Zaman.
Australia’s unemployment rate is forecast to drop to 4% in data out later today. ANZ Senior Economist Blair Chapman sees jobs growth of 45,000.
New Zealand’s annual current account deficit narrowed to 6.9% of GDP in the December quarter from 7.4% in Q3. ANZ Senior Economist Miles Workman says today’s GDP data could show a recession.
Cheers
Bernard
PS: Catch you tomorrow with the BoE rate decision, Australian unemployment and further reaction to the Fed.
