Highlights
This week, the Reserve Bank of New Zealand is expected to follow up with another 50 basis point rate cut on Wednesday and the Bank of Korea is seen holding rates on Thursday after easing last month.
In October, the RBNZ cut its policy interest rate by 50 basis points to 4.75%. The RBNZ surprised markets in August when it lowered the rate by 25 basis points to 5.50%, its first reduction since March 2020 following eight consecutive meetings of no change.
Amid cooling inflation, the BOK lowered its policy interest rate by 25 basis points to 3.25% at its latest meeting on Oct. 11 after having left it at a restrictive level of 3.50% for 13th consecutive meetings. Post-meeting data shows the annual inflation rate has eased further to 1.3% in October from 1.6% in September, well below the bank's 2% target, from 2.0% in August and 2.6% in July. The bank last raised the Base Rate by 25 basis points to 3.50 in January 2023.
A set of Japanese data at the end of the month will provide a clue to how the economy made a start to the October-December quarter ahead of the Bank of Japan's policy decision next month. The BOJ is set to lift the overnight interest rate target by another 25 basis points to 0.5% at its Dec. 18-19 meeting. The bank expects inflation to be anchored around its 2% target by early 2026, and thus is staying the course for more rate hikes that would take its policy rate to 1% by late 2025 as part of its gradual normalization process after more than a decade of large-scale easing.
Friday's Canadian GDP data is expected to confirm cooling growth performance in the July-September quarter, and combined with November jobs data, will help Bank of Canada officials decide whether they should opt for a 25-basis point cut in the policy rate as opposed to 50 basis points.
Among data due Monday, Singapore's inflation is expected to continue easing to 1.9% in October after moderating to 2.0% in September from 2.2% in August. It would remain the slowest pace of increase since 1.3% in March 2011.
German business sentiment is expected to take a breather in the November report after marking its first improvement in five months in October.
The Ifo business climate indicator is forecast to slip back to 86.0 in November from 86.5 in October after deteriorating to an eight-month low of 85.4 in September. The current conditions index is estimated at 85.5, down slightly from 85.7 seen in October, when it rose from 84.4 the previous month, while the business expectations index is also expected to slide to 87.0 after climbing to 87.3 from 86.3.
In October, the RBNZ cut its policy interest rate by 50 basis points to 4.75%. The RBNZ surprised markets in August when it lowered the rate by 25 basis points to 5.50%, its first reduction since March 2020 following eight consecutive meetings of no change.
Amid cooling inflation, the BOK lowered its policy interest rate by 25 basis points to 3.25% at its latest meeting on Oct. 11 after having left it at a restrictive level of 3.50% for 13th consecutive meetings. Post-meeting data shows the annual inflation rate has eased further to 1.3% in October from 1.6% in September, well below the bank's 2% target, from 2.0% in August and 2.6% in July. The bank last raised the Base Rate by 25 basis points to 3.50 in January 2023.
A set of Japanese data at the end of the month will provide a clue to how the economy made a start to the October-December quarter ahead of the Bank of Japan's policy decision next month. The BOJ is set to lift the overnight interest rate target by another 25 basis points to 0.5% at its Dec. 18-19 meeting. The bank expects inflation to be anchored around its 2% target by early 2026, and thus is staying the course for more rate hikes that would take its policy rate to 1% by late 2025 as part of its gradual normalization process after more than a decade of large-scale easing.
Friday's Canadian GDP data is expected to confirm cooling growth performance in the July-September quarter, and combined with November jobs data, will help Bank of Canada officials decide whether they should opt for a 25-basis point cut in the policy rate as opposed to 50 basis points.
Among data due Monday, Singapore's inflation is expected to continue easing to 1.9% in October after moderating to 2.0% in September from 2.2% in August. It would remain the slowest pace of increase since 1.3% in March 2011.
German business sentiment is expected to take a breather in the November report after marking its first improvement in five months in October.
The Ifo business climate indicator is forecast to slip back to 86.0 in November from 86.5 in October after deteriorating to an eight-month low of 85.4 in September. The current conditions index is estimated at 85.5, down slightly from 85.7 seen in October, when it rose from 84.4 the previous month, while the business expectations index is also expected to slide to 87.0 after climbing to 87.3 from 86.3.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
