This week, the central bank torch will be passed to the RBA and the RBNZ, with both Banks widely anticipated to keep interest rates unchanged. As for the economic indicators, we get the first estimate of the UK GDP for Q2, the US CPIs for July, as well as Canada’s employment report for the same month.
Monday is a relatively quiet day with no major events or indicators scheduled on the agenda.
On Tuesday, during the Asian morning, the RBA concludes its policy meeting. Expectations are for the Bank to keep interest rates untouched once again. Lately, the RBA meetings have proven to be non-events and we believe that this one will not be an exemption.
Since the latest meeting, the only noteworthy data we got were the inflation prints for Q2. The headline CPI rate rose to +2.1% yoy from +1.9% in Q1, entering the RBA’s 2-3% target band, and exceeding by a tick the Bank’s own projection of 2%. That said, the trimmed mean rate remained...
Read the full financial markets weekly outlook on JFD Research.