Calendar Week 45 – 2021
The global economy is showing signs of sustained strength and growth with many of the G20 on the brink or already reducing quantitative easing. We are now at the start of the uptrend of rate rises.
New Zealand is the leader in this regard, with no QE they already have moved rates up 0.25% to 0.5% and will most likely move again this month – just a matter of how big the move will be. USA has begun to “taper” last week and RBA adjusted forward guidance, whilst the UK had 2 BoE members of the panel of 9 vote for a rise.
The central banks are all keeping a close eye on inflation and wage growth to gauge when and how much rates will rise. This week we get inflation from the big two, USA and China – both out on Wednesday.
Thursday brings Australian employment report (wage report is later in month) and also UK’s Balance of Trade and GDP report.
