The Reserve Bank of Australia (RBA) is expected to cut its cash rate 25 basis points later today. ANZ Research upgrades its forecasts for house prices and GDP growth in Australia.
In our Deep Dive interview, ANZ Senior Economist Adelaide Timbrell details why ANZ Research has upgraded those house price forecasts.
5 things to know in 5 minutes:
The RBA is expected to cut its cash rate by 25 basis points to 3.60% this afternoon. ANZ Head of Australian Economics Adam Boyton says this decision is different from the hold in July for three reasons.
Adam sees one more cut in the cycle from the RBA after this one. He sees the board waiting until after a fresh set of forecasts in November.
ANZ Research has upgraded its GDP forecast for Australia for this year to 2.1% from 2%, and kept its 2026 forecast unchanged at 2.4%.
China reported inflation data over the weekend that showed consumer prices were flat in July from a year ago, which was slightly better than expected, while producer prices fell 3.6%, when 3.3% had been expected. ANZ Senior China Strategist Xiaopeng Xing says the Government is now more focused on stoking consumer demand, than restricting supply.
ANZ’s New Zealand Chief Economist Sharon Zollner has picked up on a Treasury paper issued last week that analysed Government spending through Covid.
Cheers,
Bernard.
PS: Catch you tomorrow with all the detail and analysis from the rate cut expected today from the Reserve Bank of Australia.
