Oil prices bubbled over US$95 a barrel overnight and seem destined to top US$100 as refineries bid against each other for crude to make hay from high diesel refining margins.
In our bonus deep-dive interview, ANZ Group’s Chief Economist Richard Yetsenga explains why AI may not become the deflationary force that some think.
5 things to know
Brent rose through US$95/bbl this morning and is headed for levels not seen since Russia invaded Ukraine, ANZ’s Senior Commodities Strategist Daniel Hynes says.
US 2-year Treasury bond yields rose three basis points to 5.09% this morning, nearing their 2006 highs before tonight’s decision by the Fed, which is widely seen as a ‘hawkish hold’. The 10 year rose four basis points to a 16-year high of 4.35%.
The RBA considered hiking earlier this month, but again decided to hold — for the third consecutive month. ANZ’s Head of Australian economics Adam Boyton sees the RBA staying on hold, but with a hike still more likely than a cut as the next move.
Central banks in Indonesia and Philippines are also expected to hold policy rates in decisions due tomorrow, says ANZ’s Asia Economist Krystal Tan.
ANZ’s weekly survey found Australian consumer expectations of inflation fell below 5% for the first time since the war in Ukraine. ANZ Australia Economist Maddy Dunk sees that reassuring the RBA.
Cheers
Bernard
PS: Look out tomorrow for the latest on the Fed’s decision tonight.
