European Central Bank meeting is today. The Bloomberg survey
shows near unanimity in forecasts for a +75bp rate hike. All but 2
economists of 51 that Bloomberg surveyed expect a 75bps hike.
This will take the deposit rate to 1.5%. Market pricing is nailing
has dribbled a little lower on the session here in Asia. The USD has
shown a little strength more widely, but the moves are tiny. AUD/USD
and NZD/USD are little net changed on the session.
Australia, the Reserve Bank of Australia meet next week, Tuesday
November 1. Yesterday we had higher than expected inflation reported
(data for Q3). I posted yesterday that two of Australia’s ‘bigfour’ banks left their forecasts unchanged for a +25bp rate hike
also posted a preview from National Australia Bank, another of the
big four, who said:
I post, the latest I have seen from NAB is that they are tipping a
+25bp as ‘more likely’ than +50.
Westpac (also one of the four) have embraced the ‘high and wide’ CPI result, tipping
on central banks, on Friday we get the Bank of Japan. No change from them is expected.
The Chinese yuan lost ground today: