Global markets are wary as another Fed President sees “no rush” to cut rates. Australia’s annual inflation rate is set to rise, and it’s a ‘live’ decision day for the RBNZ’s Official Cash Rate.
In part two of our bonus deep dive interview on Australia’s housing market, ANZ Senior Economist Adelaide Timbrell looks at the strength of household balance sheets.
5 things to know:
There were fresh doubts overnight about when the US Fed might cut rates, after another Fed President said there was “no rush”. The S&P 500 was flat. ANZ economist Bansi Madhavani says Fed Presidents are being cautious ahead of key US inflation data tomorrow night.
The RBNZ’s Official Cash Rate decision at 2pm NZ Time is in the global market spotlight to see how central banks treat sticky domestic inflation. Most economists expect a hold at 5.5%, although ANZ NZ Chief Economist Sharon Zollner forecasts a 25 basis point hike.
ANZ Senior Economist Catherine Birch says an expected rise in Australia’s annual inflation rate to 3.6% in January will likely mask monthly falls of about 0.2%, which is normal for January.
Stronger-than-expected Japanese inflation data has strengthened expectations that the Bank of Japan will soon end Japan’s era of negative interest rates, says ANZ Head of FX Research Mahjabeen Zaman.
Demand for AI-related chips drove an unexpected rise in Taiwan’s export orders in January, says Bansi.
Cheers
Bernard
PS: Catch you tomorrow with full reviews of New Zealand’s interest rate decision and Australian inflation data.
