It’s a big day for global interest rates with the FOMC expected to guide expectations for a cut in September, while the Bank of Japan may hike today. Markets are also looking ahead to today’s inflation data in Australia, and whether it might force the RBA to raise rates.
In our bonus deep dive interview ANZ Agriculture Economist Susan Kilsby analyses how weakening consumer confidence in China is hitting New Zealand’s key primary exports.
5 things to know:
US stocks and Treasury yields were down ahead of policy decisions due in the next 24 hours. The Fed decides early tomorrow and the Bank of Japan later today. ANZ Senior International Economist Tom Kenny expects a 15 bps rise to 0.25% by the BoJ.
The Fed is expected to hold, but markets will watch for clues on what it will take for it to start cutting rates in September.
Australia’s Q2 CPI numbers will be closely watched today for clues on whether the RBA might need to hike interest rates next month, says ANZ Senior Economist Catherine Birch.
The ANZ-Roy Morgan survey of Australian consumer confidence found it dipped slightly last week, but held onto most of the previous week’s gains, says ANZ Economist Maddy Dunk.
Australian building approvals fell 6.5% in June from May - about double the market expectation, due to a 19.7% drop in the volatile unit approvals category. ANZ Senior Economist Blair Chapman says the direction of travel was expected.
Cheers
Bernard
PS: Catch you tomorrow with analysis of the BoJ and FOMC decisions, and that Australian CPI data.
