US inflation data met forecasts overnight. Now the focus shifts to how hard the Fed will push back tomorrow morning at market expectations of early and large rate cuts next year.
In our bonus deep-dive interview, ANZ Pacific Economist Kishti Sen explains why Papua New Guinea’s economy is set to double inside the next five to eight years.
5 things to know
US CPI data overnight met expectations. ANZ Head of G3 Economics Brian Martin sees the Fed pushing back on market expectations of early and large rate cuts next year with core inflation still high and sticky.
Brian says markets are ripe to sell off if the Fed’s lowering of its ‘dot plot’ for next year’s Fed Funds Rate doesn’t go far enough to reassure investors of a soft landing.
Australian consumer confidence improved last week to its best levels since February, but ANZ Australia Economist Maddy Dunk says renters now feel less confident than home owners, who think the rate hikes have ended.
Maddy says Australian business confidence fell to its worst levels in 11 years last month, particularly in retail.
NZ net migration rose to a record high 128,900 in the year to the end of October, which the RBNZ is watching like a hawk for signs demand will bolster inflation, says ANZ Economist Henry Russell.
Cheers
Bernard
PS: Look out tomorrow morning for the FOMC’s decision and ‘dot plot’ hot off the press, plus the detail from Australia’s budget statement (MYEFO) later today.
