US jobs, consumption and producer inflation data overnight support a Fed rate cut in December. The Reserve Bank of New Zealand is set to cut rates today. And Australia’s October inflation is expected to stay above the Reserve Bank of Australia’s target band.
In our Deep-Dive interview, ANZ Head of Asia Research Khoon Goh looks at what Singapore’s improving growth outlook could mean for the Monetary Authority of Singapore.
5 things to know in 5 minutes:
US economic data releases overnight reinforced downside risks to the labour market and consumption, indicating the US Fed can cut rates in December, says ANZ Economist Henry Russell.
Henry says there was also some reassurance on the US inflation front. A producer prices report for September contained a moderate pace of goods inflation, indicating little inflation pressure from tariffs coming through. Market pricing indicates a 90% chance of a December rate cut.
Australia’s October monthly inflation data is expected to show the headline rate around 3.3%, according to ANZ Research. This comes as Australian consumers continue to expect inflation to remain high, with ANZ-Roy Morgan Australian Consumer Confidence survey expectations ticking up again last week, says ANZ Economist Sophia Angala.
The headline ANZ-Roy Morgan Australian Consumer Confidence measure also ticked up, by 2.9 points to 87.1.
Today is the final Reserve Bank of New Zealand rates decision until mid February. ANZ New Zealand Chief Economist Sharon Zollner says while expectations are for a 25 basis point cut, the central bank’s guidance is key.
Cheers,
Bernard.
Catch you tomorrow with reaction to today’s Australian inflation data and the RBNZ decision.
