ECB cuts & focus turns to Fed

Just briefly in this morning’s #5in5withANZ podcast below:

The ECB cuts another 25 basis points, as expected. Global markets are firm ahead of next week’s Fed decision. India’s inflation is firm, but the RBI is on track to ease in December. NZ inflation is firmer than forecast, but not enough to concern the RBNZ.

5 things to know in 5 minutes:

1. The European Central Bank cut its deposit rate by 25 basis points to 3.5% overnight, as expected. ANZ Economist Bansi Madhavani, CFA says the ECBemphasised it’s not on a pre-determined path.
2. The last partial New Zealand price data before the Reserve Bank’s October decision came in slightly stronger than expected in August. But ANZ Senior Economist Miles Workman says it’s not enough to offset weaker July prices.
3. ANZ’s Truckometer index of vehicle movements in New Zealand points to ongoing soft activity in August, indicating weakness in Q3 GDP. ANZ New Zealand Chief Economist Sharon Zollner says rate cuts are the antidote.
4. India’s annual CPI inflation rate rose to 3.65% in August from 3.54% in July. ANZ Economist Dhiraj Nim says the Reserve Bank of India will check food inflation softens through October and November, before easing in December.
5. In Japan, the prices paid by goods producers fell 0.2% in August from July - the first fall this year. ANZ FX Analyst Felix Ryan says the weakness shouldn’t be a game changer for the Bank of Japan.

In our bonus Deep Dive interview:

Asia Society Australia CEO Anthony Bubalo analyses the key themes at the recent ANZ-sponsored AFR Asia Summit in Melbourne, including how Australian businesses grappling with geopolitics.

Cheers

Bernard

PS: Catch you next week with a review of key China activity data out over the weekend.