US rate cut expectations grow. Australian wage growth is strong, but that shouldn’t worry the RBA. The Bank of Thailand cuts rates. There’s another tentative sign that the worst could be over for New Zealand’s economy.
In our Deep Dive interview, ANZ Economist Krystal Tan analyses the implications for Thailand’s economy of recent political turmoil which has seen its Prime Minister suspended.
5 things to know in 5 minutes:
US markets were supported overnight by growing expectations the Fed will cut from September. Yesterday’s July inflation report and comments from the US Treasury Secretary Traders have spurred traders to fully price in a 25 basis point rate cut next month, says ANZ Economist Bansi Mahavani.
Australian wage price inflation of 0.8% in Q2 matched market expectations, with the annual rate of 3.4% slightly above the RBA’s pick. ANZ Economist Aaron Luk says individual agreements drove the growth in the quarter.
Australian housing lending ex refinancing rose 2% in Q2 - in line with expectations, after a fall in Q1. ANZ Senior Economist Adelaide Timbrell says rising house prices are leading to increasing average loan sizes.
Another tentative sign New Zealand’s Q2 slump has bottomed out - retail card spending data showed a seasonally adjusted small increase in July. ANZ Senior Economist Matthew Galt says higher prices were a factor, but at least there wasn’t another fall.
The Bank of Thailand’s rate setting committee voted unanimously for a 25 basis point rate cut to 1.5%. ANZ Economist Krystal Tan says that’s a change from previous rate cuts where there were at least one or two dissenters.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of today’s Australian labour market data - which ANZ Research expects will show unemployment holding at 4.3%.
