In this week’s CIO Weekly Investment Outlook podcast, the Private Bank’s Chief Investment Officer in APAC, Stefanie Holtze-Jen discusses repricing in markets and monetary policy. In considering a September rate cut, Stefanie says the Federal Reserve needs to balance economic growth, inflation, and job market risks when it meets this week.

Europe is also repricing in anticipation for when second quarter GDP data is announced this week, which may show slower growth. However, an inflation surprise, with data due mid-week, could lower the probability of the ECB’s next rate cut in September.

For Japan, Stefanie says markets have been repricing on expectations that the Bank of Japan could hike rates in July. Furthermore, she sees the recent strengthening of the Japanese Yen also as linked to the easing of the US dollar, due to frontloaded rate cut expectations from the Fed and speculation the Bank of Japan may at least start to reduce bond purchases. 

For China’s Renminbi, the easing US dollar also plays a role for the People’s Bank of China. Stefanie also discusses upcoming PMI data, with early indicators pointing to a further slowdown in manufacturing data in July. But summer travel spending may boost consumer data in the months ahead.

Tune in and listen to Stefanie’s key thoughts for the week ahead.

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