The Fed keeps US rates on hold, and lowers its tone on growth; Australia’s inflation paves the way for an August rate cut; there are signs of weakness in New Zealand’s economy; And Singapore leaves policy on hold.
In our deep dive interview, ANZ’s Matthew Galt looks at what’s been driving local Council property tax rates up in New Zealand in recent years.
5 things to know in 5 minutes:
The Federal Open Markets Committee has just held the US Federal Funds Rate at a range of 4.25-4.5%, and lowered its tone on US growth - saying it had moderated in the first half of the year. ANZ Economist in London, Bansi Madhavani, says that’s a fair characterisation of Q2 GDP data which was released earlier overnight. Two FOMC members dissented in favour of a cut.
Australia’s Q2 inflation rate should support the Reserve Bank of Australia to cut rates in August, ANZ Senior Economist Adelaide Timbrell says. Headline CPI at 2.1% was just below expectations, while trimmed mean at 2.7% was in line.
Adelaide says there was quite some focus on the data following RBA Governor Michele Bullock’s speech last week highlighting risks from a higher print.
Headline New Zealand business confidence rose 2 points in July to a net 48% expecting better conditions, according to ANZ’s Business Outlook. But New Zealand Chief Economist Sharon Zollner says that’s masking economic weakness.
The Monetary Authority of Singapore left policy on hold at its meeting yesterday, as expected. ANZ Head of Asia Research Khoon Goh says it’s now a matter of wait-and-see on global economic developments.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of the Bank of Japan’s rate decision later today.
