Treasury yields fall on hopes inflation is moderating. The Yen firms after reports the BoJ may raise its inflation outlook. Taiwan’s CPI is lower than forecast. Australian consumers see higher inflation. The RBNZ is expected to hold its cash rate.
In our bonus deep dive interview, ANZ Economist Bansi Madhavani looks at what’s at stake in South Korea’s general election today for fiscal and monetary policy.
5 things to know:
US Treasury yields fell on a growing hope that US CPI data out tonight will show monetary policy is restraining inflation, ANZ Head of G3 Economics Brian Martin says.
Taiwan’s CPI inflation rose 2.14% in March, below the 2.5% expected. ANZ Economist Bansi Madhavani says all eyes are now on the effects of looming electricity price hikes.
Australia’s ANZ-Roy Morgan Consumer Confidence survey dipped as inflation expectations rose for the third week in a row, something ANZ Economist Maddy Dunk says will be closely watched by the RBA.
The Reserve Bank of New Zealand reviews its Official Cash Rate later today. ANZ New Zealand Chief Economist Sharon Zollner says all expectations are for the rate to be held at 5.5%.
Feeding into the RBNZ’s outlook will be the 14-point drop in yesterday’s NZIER Business Confidence survey. Sharon says the drop mirrors ANZ’s own Business Outlook survey, and shows some easing in the supply side of the economy.
Cheers
Bernard
PS: Catch you tomorrow with market reaction to those US CPI numbers out tonight.
