The Reserve Bank of Australia holds, and was less hawkish than it could have been. South Korea’s inflation is stronger than expected. And New Zealand’s unemployment rate is expected to rise again later today.
In our Deep-Dive interview ANZ Head of Australian Economics Adam Boyton analyses the RBA’s ability to cut rates again after last week’s inflation surprise.
5 things to know in 5 minutes:
The Reserve Bank of Australia held the cash rate at 3.60% yesterday as expected. But it took a less hawkish view than it could have of last week’s upside inflation surprise, noting its central forecast contained another rate cut. ANZ Head of Australian Economics Adam Boyton is picking that rate cut early next year.
Ahead of the RBA decision, the ANZ-Roy Morgan Australian Consumer Confidence survey showed rising inflation expectations and a 1.3 point drop in headline confidence, says ANZ Economist Maddy Dunk.
Maddy says there were different moves in confidence based on household type, with renters feeling the pinch at the moment.
South Korea’s annual CPI was 2.4% in October, above expectations for 2.2%. ANZ Economist Krystal Tan says that’s the highest it’s been since July 2024 and means the Bank of Korea should keep rates on hold.
New Zealand’s third quarter jobs data today is forecast by ANZ Research to show employment growth of 0.2%, but also a 0.1 percentage point lift in the unemployment rate to 5.3%. ANZ Senior Economist Miles Workman says this should be as bad as it gets for the jobless rate.
Cheers,
Bernard.
PS: Catch you tomorrow with what New Zealand’s jobs data today could mean for the Reserve Bank of New Zealand’s rate cut path.
