US stocks rebound after yesterday’s AI slump, and despite Fed officials indicating no March rate cut. The RBA digs into why inflation jumped at the end of 2025, and China leaves key rates unchanged.
And then in our deep-dive interview, ANZ Economist Sophia Angala reviews how Australian consumers have been tracking so far in 2026.
5 things to know in 5 minutes:
US consumer confidence lifted slightly, supporting stocks to rise after yesterday’s slump on AI fears. Meanwhile, several Fed Governors spoke overnight on the outlook for inflation and rates. ANZ Head of G3 Economics Brian Martin says there was general alignment of views, which indicated not much desire to cut rates in March.
The Reserve Bank of Australia in a staff speech yesterday sought to tackle the question of what drove the unexpected pick up in Australian inflation at the end of 2025. ANZ Head of Australian Economics Adam Boyton says it came after the RBA made a downward adjustment to the inflation forecast in November, which was reversed in February.
Adam says the RBA appeared concerned about more capacity pressure and an unexpected step up in demand in the second half of last year.
ANZ Roy Morgan Australian Consumer Confidence jumped 3.1 points last week to 80.2, leaving the series now 3.3 points higher than when the RBA cut the cash rate this month. ANZ Economist Sophia Angala says, however, the four-week moving average fell to its lowest since December 2023.
China’s authorities left key 1-and 5-year Loan Prime Rates on hold yesterday, amid the new year holiday and a lack of data releases. ANZ Chief Economist for Greater China Raymond Yeung is not expecting broad-based stimulus, such as rate cuts, during the Year of the Horse.
Cheers,
Bernard.
PS: Catch you tomorrow with what January inflation data could mean for the RBA.
