Central banks are now grappling with lower market interest rates that have undone some of the heavy lifting they were relying on from previously higher rates to fight inflation.
In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh unpacks why there has been an improvement in exports from Asia ex China.
5 things to know
The A$ opened firm at 65.55 USc and the NZ$ was up at 60.30 USc at 5am Sydney/Melbourne time, profiting from a weak US$ after last week’s fall in market interest rates.
ANZ’s New Zealand Chief Economist Sharon Zollner says the RBNZ will be wary in its MPS next Wednesday of rubber-stamping a sharp fall in market interest rates in recent weeks. She has a few suggestions for the RBNZ.
ANZ’s Chief Economist for Southeast Asia and India, Sanjay Mathur, says weaker-than-expected Thai GDP growth was due to tight fiscal policy.
Sanjay says a drought and weak export revenues are headwinds too for the Thai economy.
He says the Bank of Thailand will have wait for the Fed to indicate an easing before it can ease too, even though Thai inflation is within the central bank’s target range.
Cheers
Bernard
PS: Have a great day and look out tomorrow morning for an analysis of the RBA minutes due later today.
