The Reserve Bank of Australia cuts, with further easing on the cards. US inflation lifts but with positive signs tariffs are only having a transitory effect. New Zealand’s economy may be showing signs of life in Q3.
In our Deep Dive interview, ANZ Head of Australian Economics Adam Boyton reviews the RBA’s decision and latest set of economic forecasts.
5 things to know in 5 minutes:
US markets reacted positively overnight to a July inflation report which showed core CPI up 0.3% in the month, and an annual rate of 3.1% from 2.9% in June. ANZ Head of G3 Economics Brian Martin says the lift was driven by services prices, indicating the impact of tariffs on goods prices is transitory, and paving the way for the Fed to cut rates in September.
The Reserve Bank of Australia yesterday cut the cash rate 25 basis points to 3.60%. ANZ Head of Australian Economics Adam Boyton says the move and motives were widely expected. Adam has another cut in for November.
The ANZ Roy Morgan Australian Consumer Confidence survey showed a slight dip last week to 89.3. ANZ Senior Economist Adelaide Timbrell says the monthly average though is at a three-year high.
Adelaide says yesterday’s rate cut by the RBA will likely boost people’s confidence in their own future financial conditions.
ANZ’s New Zealand Truckometer index for July showed both light and heavy traffic movements rising in the first month of Q3. ANZ New Zealand Chief Economist Sharon Zollner says that’s an encouraging sign.
Cheers,
Bernard.
PS: Catch you tomorrow with with how Australian wages performed in Q2.
