Weekly Updates

Abroad, the FOMC and Bank of Japan increased their policy rates, as expected. US retail sales rose strongly in August. Chinese economic activity data for August were again underwhelming.

In Australia, NAB business conditions deteriorated to the lowest level in six years in August, with business confidence also easing.

In Australia, the annual rate of real GDP growth slowed in Q2, but not as much as expected, with increased demand for electric vehicles supporting household consumption.

In Australia, the RBA Monetary Policy Board minutes came in on the hawkish side, stressing that members will focus on the upside risk to the inflation outlook. Meanwhile, the July inflation figures surprised to the upside, leading to a re-intensification of RBA cash rate hike expectations.

In Australia, employment saw an unexpected decline in July, while the unemployment rate picked up. Wages growth remained moderate in Q2. Westpac consumer sentiment improved in August, but remained weak. The S&P Global flash PMIs pointed to slower, albeit still decent expansion in August.

In Australia, the RBA kept the cash rate target unchanged but maintained a hawkish stance. NAB business conditions improved but remained below their long-run average, while business confidence was still negative in July. New home loans fell in Q2, driven in particular by a plunge in investor loans.