"One monthly inflation print doesn't make a meeting"
Description
As they near the end of their easing cycles, the Antipodean central banks are being tested by contrasting data signals - a hot August inflation print in Australia and contracting second-quarter activity in New Zealand.
Will these price signals end the Reserve Bank of Australia's rate cuts? By contrast, will economic weakness prompt the Reserve Bank of New Zealand to go for a 50-basis-point cut at its next meeting?
"There’s scope for the RBA to ease in November but easing next year has started to look a little bit more unlikely," says Andrew Besuyen, Medley Advisors' RBA/RBNZ-watcher, in this podcast. "On the November meeting, I'd say one monthly inflation print doesn't make a meeting ... I think the big difference this time is that the labour market is still softening".
United States
