Show Notes
The ECB holds rates, as expected, but President Christine Lagarde resigns unexpectedly. US growth and inflationary pressures strengthen, heaping pressure on the Fed to hike in December. And New Zealand business confidence remains resilient.
In our deep dive interview, ANZ Head of G3 Economics Brian Martin analyses what’s next for the Fed after this week’s rate hold.
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More from 5 in 5 with ANZ
The Fed holds rates in a 10-to-2 vote - markets still see a hike in December. The RBNZ unexpectedly holds and sends the NZ dollar tumbling. Bank of Thailand also holds - but that one was expected.
US markets firm ahead of the Fed’s rate decision tomorrow - expected by the market to be a hold. And in Australia today, attention is on Q3 inflation data for clues on whether the RBA will hike next week.
The Reserve Bank of Australia is signalling its discomfort with high inflation, which has increased market expectations for a rate hike next week. South Korea is expected to report strong GDP growth.
Oil rises on fears of renewed strikes on Iran, before or after next week’s US mid-term elections. Markets expect the Fed to hold this week. And ANZ Research tweaks its call for New Zealand’s cash rate, bringing forward a hike to December from February.
US stocks fall overnight on AI valuation fears, oil jumps with talk of new strikes on Iran, and bond yields fall on safe haven buying. The Philippines hikes rates more than expected. And New Zealand inflation falls, but not enough to stop a rate hike next week.