Oil jumps and Government bond yields rise on inflation worries as the US launches new Iran strikes. ANZ Research upgrades its Australian Q2 GDP forecast. And the RBNZ is expected to hike rates today.
In our deep-dive interview, ANZ Group Chief Economist Richard Yetsenga reviews the economic opportunities from Australia’s data centre construction boom.
5 things to know in 5 minutes:
Brent crude rose nearly 7% and government bond yields surged as more US strikes on Iran stoked inflation worries. This comes as markets look to the Fed’s rate decision this month after Fed Chair Kevin Warsh’s hawkish Jackson Hole speech, says ANZ Head of G3 Economics Brian Martin.
ANZ Research has upgraded its forecast for Q2 GDP slightly to 0.5% for the quarter and 2% for the year, following final partial data this week. ANZ Head of Australian Economics Adam Boyton says there should be more strength on the income side of the accounts, but less on the demand side.
Higher July trimmed mean inflation - the RBA’s preferred measure - was likely behind a drop in ANZ-Roy Morgan Consumer Confidence last week, says ANZ Economist Sophia Angala. Headline confidence fell 2.6 points to 74.9 after trending up for most of August.
Australia’s housing market continues to slow, with capital city house prices falling 1.1% in August. Meanwhile, building approvals dropped 3.6% in July although that was after a strong June, Sophia says.
The Reserve Bank of New Zealand today is expected to hike the Official Cash Rate 25 basis points to 2.75%. ANZ New Zealand Chief Economist Sharon Zollner says the move has been well-signalled.
Cheers,
Alex, standing in for Bernard, who will be back from Monday.
PS: Catch you tomorrow with reviews of Australia’s Q2 GDP and the RBNZ rate decision.
