The US administration officially postpones its tariff deadline to 1 August, but sends copper soaring with talk of a 50% tariff. The Reserve Bank of Australia surprises by holding rates. The Reserve Bank of New Zealand is also expected to hold later today.
In our deep dive interview, ANZ Head of Australian Economics Adam Boyton explains why the RBA’s unexpected decision to hold rates doesn’t mark the end of an easing cycle.
5 things to know in 5 minutes:
The Trump administration officially postponed its reciprocal tariff deadline from today - 9 July - until the first of August. Meanwhile, copper futures surged nearly 20% as President Trump suggested a 50% tariff on copper may be included under separate sectoral tariffs. ANZ Economist Bansi Madhavani says a best case scenario would be the US reaching trade agreements with major partners.
The Reserve Bank of Australia held the cash rate at 3.85% yesterday versus expectations for a cut. ANZ Head of Australian Economics Adam Boyton says the surprise doesn’t mark the end of the easing cycle, with an August cut expected.
The ANZ-Roy Morgan Australian Consumer Confidence survey showed inflation expectations rose again last week. Confidence itself continued to rise, up 1.4 points to 88.6. ANZ Economist Sophia Angala says expectations for a rate cut yesterday likely drove improved financial and economic outlooks.
Eyes are now on the Reserve Bank of New Zealand’s rate decision at 2pm Wellington time today. ANZ New Zealand Chief Economist Sharon Zollner and the market are expecting a hold at 3.25%.
Sharon is still picking three more rate cuts between now and February, particularly as weak Q2 data shows through.
Cheers,
Bernard.
PS: Catch you tomorrow with the all the detail of the Reserve Bank of New Zealand’s rate decision at 2pm Wellington time today.
