The Reserve Bank of New Zealand cuts 50 basis points and signals more to come. Australia’s wage growth is lighter than expected, which is good news for the RBA ahead of January jobs figures today. They are set to show a solid labour market.
In our bonus deep dive interview, ANZ Economist Maddy Dunk highlights how housing markets in Australia’s capital cities struggled ahead of the RBA’s rate cut.
5 things to know in 5 minutes:
The Reserve Bank of New Zealand cut by 50 basis points to 3.75% yesterday. ANZ New Zealand Chief Economist Sharon Zollner says a key takeaway was the RBNZ’s confident tone on inflation.
Sharon says the RBNZ’s confidence comes even as some components of domestic inflation remain stubbornly sticky.
The RBNZ’s faster projected fall in rates over the next 12 months prompted ANZ Research to pencil in three more rate cuts, versus just one previously.
Australia’s January jobs figures today are expected by ANZ Research to show the unemployment rate steady at 4%, says ANZ Economist Maddy Dunk.
Bank Indonesia held its main rate yesterday, but has an easing bias, says ANZ Economist Krystal Tan.
Cheers,
Bernard
PS: Catch you tomorrow morning with coverage of Australia’s January jobs market data later today.
