US producer prices are flat, in an another sign tariffs aren’t very inflationary, yet. Speculation swirls on Fed Chair Powell’s future. Bank Indonesia cuts rates. Australian jobs data today will be the focus for the RBA.
In our deep dive interview, ANZ Economist Krystal Tan analyses the US tariff letters received to date by several major Asian economies.
5 things to know in 5 minutes:
US producer price inflation was flat in June in a further sign that tariff effects are not yet being passed on by manufacturers to customers. ANZ Economist Bansi Madhavani says that within the PPI, goods prices rose 0.3% in June - the highest since February. However, services prices fell 0.1%.
Speculation is growing that President Trump is getting ready to fire US Fed Chair Jerome Powell. Reports overnight suggested the President discussed the move but he later said he would not do so. ANZ Head of FX Research Mahjabeen Zaman says a more dovish chair could see more easing, risking higher inflation.
Australian June jobs market data today will be the first look at the labour market since the Reserve Bank of Australia’s surprise decision to hold rates this month. ANZ Economist Aaron Luk is expecting jobs growth of 35,000 and unemployment to stay at 4.1%.
Aaron says the RBA will be keeping an eye out for signs of ongoing strength in the labour market as it starts to weigh up whether it can cut in August.
Bank Indonesia cut its benchmark rate 25 basis points to 5.25% yesterday. ANZ Economist Krystal Tan says the move was to support growth.
Cheers,
Bernard.
PS: Catch you tomorrow with what those Australian June jobs numbers could mean for the RBA.
