Market expectations the Fed will cut next month have drifted below 50%. Later today, the RBA’s board will release its minutes from its hold decision, and New Zealand’s house prices nudge lower in October.
In our Deep-Dive interview, ANZ Asia Economist Krystal Tan explains why Thailand’s GDP contracted more than expected in the September quarter.
5 things to know in 5 minutes:
Expectations the Fed will cut again next month have dribbled away to as low as 42% overnight, from as high as almost 100% soon after the September decision, says ANZ Senior International Economist Tom Kenny.
The Reserve Bank of Australia (RBA)’s board will release the minutes from its decision earlier this month to hold the cash rate at 3.6%. ANZ Senior Economist Adelaide Timbrell will watch how the board views both the labour market and inflation.
Japan’s GDP fell 1.8% annualised in the September quarter, which was actually better than the 2.4% contraction expected. It followed 2.3% growth in the June quarter. The Liberation Day tariffs caused the sharp swings, says Tom.
There’s a big meeting today between the Bank of Japan Governor Kazuo Ueda, who is seen needing to hike rates to get inflation down, and new Prime Minister Sanae Takaichi, who wants to stimulate the economy, says Tom.
New Zealand house prices fell 0.1% in seasonally adjusted terms in October from September, despite a 4.2% rise in sales volumes. ANZ Senior Economist Matt Galt says extra demand from lower mortgage rates keeps being met by extra supply as vendors list more properties.
Cheers,
Bernard.
PS: Catch you tomorrow with details and analysis from today’s RBA minutes.
