I listened to an Economist on Sunrise this morning and he said if it wasn’t for a ‘’big week on the earnings front ‘’ they would have nothing to do. When you look at the economic calendar for this week from a domestic viewpoint, it is very light. We have New Motor Vehicle Sales out today which is a low tier economic release. On Tuesday things heat up with the RBA Release of the August Policy Minutes, that is what the RBA Governors said behind closed doors at their last rate decision and whether it was a unanimous decision to keep rates on hold or whether there was some dissention.
If there was a unanimous decision to keep rates on hold then that leans towards the next rate decision remaining the same. If there was dissention or 1 or 2 governors argued for a rate rise, then potentially at the next meeting we could get a surprise .Then on Wednesday Governor Glenn Stevens testifies n front of the Standing Committee on economics, potentially giving guidance on the RBAs policies going forward on the state of the Australian economy, the height of the Australian Dollar etc.
In New Zealand we kick off the week on Tuesday with the RBNZ 2-Year Inflation Expectation which will tell us a lot about the future direction of Interest Rates also. A big night on Tuesday night in the U.K, Inflation data by way of the Consumer Price Index and core CPI set to be released along with PPI or Producer Price Index which is a weighted index of prices at the wholesale level.
The market has been looking for any forward guidance from the BOE or Bank of England on when the first possible rate hike will be , the latter part of this year or early into 2015, and Inflation data goes a long way to giving us a clue as to when the first hike in Interest rates will be