{"id":32874,"date":"2023-07-07T22:34:34","date_gmt":"2023-07-08T02:34:34","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/week-ahead-u-s-inflation-data-headline-boc-ponders-another-hike-possible-rbnz-pause\/"},"modified":"2023-07-07T22:34:36","modified_gmt":"2023-07-08T02:34:36","slug":"week-ahead-u-s-inflation-data-headline-boc-ponders-another-hike-possible-rbnz-pause","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32874","title":{"rendered":"Week Ahead &#8211; U.S. Inflation Data Headline, BoC Ponders Another Hike, Possible RBNZ Pause"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p><figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<h2><strong>US<\/strong><\/h2>\n<p>This week is all about inflation. Annual inflation will tumble as energy prices drop and due to base effects, but many traders will pay close attention to the core readings. CPI on a monthly basis is expected to increase by<span class=\"paywall-full-content invisible\"> 0.3%, higher than May\u2019s pace of 0.1%. The headline annual reading is expected to fall from 4.0% to 3.0%. The monthly core reading is expected to rise 0.3%, while the year-over-year reading softens to 5.0%. Expectations are for pricing pressures to edge higher going forward.<\/span><\/p>\n<p class=\"paywall-full-content invisible\">The upcoming week is filled with Fed speakers and the Wednesday release of the Beige Book. On Monday, we hear from Barr on bank supervision, Daly talks about inflation and banking, and Mester discusses the economic and policy outlook. Wednesday contains appearances by Barkin, who talks about inflation, Kashkari discusses monetary policy, Bostic attends the Atlanta Fed payments event, and Mester<span class=\"paywall-full-content invisible no-summary-bullets\"> speaks on FedNow. The recent flow of economic data may warrant steady hawkish Fed speak.<\/span><\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Eurozone<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Not the most thrilling of weeks, dominated by tier two and three economic data. The standout is probably the ECB accounts, although I\u2019m not sure there\u2019ll be anything overly surprising in them. ZEW surveys, final inflation readings, and new EU economic forecasts are also notable but may not move the needle when it comes to economic or interest rate expectations.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>UK <\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Next week offers a selection of economic data, the most notable being the labor market report on Tuesday. Better data seems to be appearing everywhere but the UK at the moment and BoE policymakers will be hoping the jobs data brings some overdue good news, being more modest wage growth and signs of an overheated labor market cooling. No doubt BoE Governor Andrew Bailey will comment on this is his numerous appearances throughout the week. We\u2019ll also get an update on the resilience of the economy with GDP data on Tuesday and Thursday, the latter being the official release.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Russia<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Inflation data on Wednesday is expected to show pressures heating up which may explain why the CBR has been hinting that the next interest rate move may be higher rather than lower. The extent to which the CPI number rises will likely determine the urgency with which the central bank will respond. The rouble remains under pressure and rate hikes may help to address both problems.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>South Africa<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">No major economic data or events next week. Manufacturing production and the business confidence survey are the only notable releases.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Turkey<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The lira remains under immense pressure after the government abandoned its unsustainable and unconventional policy of monetary easing and market interventions, which triggered an enormous spike in inflation. Inflation eased slightly last month but that won\u2019t likely last as the currency has fallen to new record lows. Data next week include unemployment, industrial production, and current account.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Switzerland<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">No major releases or events next week, with PPI on Friday as the only thing on the calendar.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>China<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Several key data and events to watch for this week. On the geopolitical front, US Treasury Yellen has kick-started her official visit to China and will be meeting top Chinese officials over the weekend, 8 July to 9 July. Market participants will be watching for signs of whether there will be progress made between the US and China in finding areas of common economic ground and opening communication channels for further dialogue amid a still frosty relationship between them over the current \u201ctech war\u201d.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On Monday, inflation and producers\u2019 prices data for June will be out and the consensus is set for a continuation of lackluster readings. Consumer inflation is expected to come in at 0.2% year-on-year, unchanged from 0.2% in April, a 26-month low. On the other hand, producers\u2019 prices are expected to slip further to -5% year-on-year from -4.6% in May. If it turns out as expected, it will be the ninth consecutive month of contraction which increases the risk of a deflationary spiral in China.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On Tuesday, outstanding loan growth together with M2 money supply data will be released. Loan growth is expected to inch slightly lower to 11.2% year-on-year in June from 11.4% in May; its weakest pace of increase since January 2023.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On Thursday, the balance of trade for June will be out to gauge the latest conditions in external and internal demand. Exports growth is forecasted to shrink at a lesser magnitude of -3.1% year-on-year from -7.5% in May, a three-month low. Imports growth is forecasted to decline at a lesser rate of -2 % year-on-year from -4.5% in May. If it turns out as forecasted, it will be the fourth consecutive month of falling purchases, signaling the continuation of a weak domestic demand environment.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">I<strong>ndia<\/strong> <\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Out on Wednesday, consumer inflation for June is forecasted to dip slightly to 4.1% year-on-year from 4.25% in May, the lowest level of growth since April 2021. On a month-on-month basis, consumer inflation is forecasted to inch lower to 0.3% from 0.51% in May.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Wholesale inflation for June will be released on the following day and are forecast to drop further to -3.7% year-on-year from -3.48% in May. If it turns out as expected, it will be the third consecutive month of contraction.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">To wrap up the week, the balance of trade for June will be out on Friday.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Australia<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Two key soft data will be out on Tuesday; Westpac consumer confidence is expected to rise further to 3.2% month-on-month for July from 0.2% recorded in June. In contrast, the NAB Business Confidence for June is forecasted to deteriorate further to -6 from -4 in May.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Consumer inflation expectations for Jul will be released on Thursday, it is expected to dip slightly to 4.9% from 5.2% in June.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>New Zealand<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The RBNZ monetary policy decision is on Wednesday, with no change expected after the central bank hiked its official cash rate for the 12th consecutive time in May. This took it to 5.5%, its highest level since December 2008.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Japan<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Out on Monday, the current account surplus for May is expected to shrink slightly to JPY1,884.5 billion from JPY1,895.1 billion in April. Bank lending for June is forecasted to drop to 1.6% year-on-year from 3.4% in May.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Eco Watchers Survey, a gauge for Japan\u2019s service sector sentiment is forecasted to improve further to 56 in June from 55 recorded in May, its highest reading since December 2021. If it turns out as expected, it will be the fifth consecutive month of increases for service sector sentiment.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Machinery orders for May will be released on Wednesday. The consensus is expecting a reduction in growth decline to -0.2% year-on-year from -5.9% in April.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Singapore<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Flash Q2 GDP will be out on Friday; some forecasters are calling for a technical recession where -0.2% is being forecasted on a quarter-on-quarter basis for Q2. If it turns out as expected, it will be the second consecutive quarter of negative growth after Q1\u2019s reading of -0.7% q\/q.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On a year-on-year basis, Q2 GDP is forecast to come in lower at 0.1% from 0.4% recorded in Q1.<\/p>\n<hr class=\"paywall-full-content invisible no-summary-bullets\">\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Economic Calendar<\/h2>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Saturday, July 8<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US Treasury Secretary Yellen is in China through Sunday for meetings with senior government officials<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Monetary Authority of Singapore to name Deputy Prime Minister Wong as central bank chair<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">ASEAN foreign ministers and their counterparts from the US, China, Russia, and other key partners<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Sunday, July 9<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">China aggregate financing, money supply, new yuan loans<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US President Joe Biden attends 74th NATO summit<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">ECB policymakers Villeroy, Centeno, and de Cos, plus Bank of England Governor Bailey speak at Les Rencontres Economiques d\u2019Aix-en-Provence 2023 conference<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Australian Conference of Economists in Brisbane through Wednesday<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Monday, July 10<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">China CPI, PPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Japan balance of payments<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">New Zealand home sales<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Singapore GDP<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US wholesale inventories<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Daly to discuss inflation and bank supervision at Brookings Institution event<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Mester speaks on the economic and policy outlook at a virtual event hosted by the University of California at San Diego<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Bostic speaks at the Cobb Chamber of Commerce<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Barr in a discussion at Bipartisan Policy Center about bank supervision, regulation, and new capital requirements<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">BOE Governor Bailey delivers speech at Financial and Professional Services Dinner<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Riksbank releases minutes from June 28 meeting<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">German Chancellor Scholz, Australia\u2019s Prime Minister Albanese joint news conference<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Tuesday, July 11<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Australia consumer confidence<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Germany CPI, ZEW survey expectations<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Italy industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Japan money stock, machine tool orders<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Mexico international reserves<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">South Africa manufacturing production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Turkey current account<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">UK jobless claims, unemployment<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Bullard speaks at National Association for Business Economics meeting<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">NATO holds its annual summit<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Wednesday, July 12<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>US CPI<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Canada rate decision: Expected to raise rates by 25bps to 5.00%<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">India CPI, industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Japan PPI, machinery orders<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Mexico industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>New Zealand rate decision<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Russia CPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Spain CPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Turkey industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US President Biden visits Helsinki for a US-Nordic summit<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US Federal Reserve issues Beige Book regional economic survey<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">ECB\u2019s Vujcic speaks on monetary policy and euro-area outlook<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">ECB chief economist Lane and Fed\u2019s Kashkari speak on a panel about banking solvency and monetary policy at the National Bureau of Economic Research Summer Institute 2023 event<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Mester speaks about FedNow at the NBER event<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Fed\u2019s Bostic speaks at the bank\u2019s 2023 Payments Inclusion Forum<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">White House economic adviser Brainard to address the Economic Club of New York<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">BOE Governor Bailey at a news conference on results of financial stability report and stress tests of UK banking system<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">BOE\u2019s Breeden and Foulger brief on the stability report<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">RBA Gov Lowe to speak at an event in conjunction with the Australian Conference of Economists in Brisbane<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Far East Grain Forum 2023 in Vladivostok, Russia<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Thursday, July 13<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US initial jobless claims, PPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">China trade<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Eurozone industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">France CPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Israel trade<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">New Zealand food prices, manufacturing PMI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">UK industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">French President Emmanuel Macron hosts Indian PM Narendra Modi<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">EU-Japan Summit in Brussels with an appearance from Japanese PM Kishida<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">French President Macron hosts Indian PM Modi at dinner in Paris<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Friday, July 14<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Economic Data\/Events<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">US University of Michigan consumer sentiment<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Bank Earnings from JPMorgan, Citigroup, and Wells Fargo<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Canada existing home sales<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">India trade, wholesale prices<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Italy trade<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Japan industrial production<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Poland CPI<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Thailand foreign reserves<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">G20 finance ministers and central bank governors meet in India<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Sovereign Rating Updates<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">EFSF (Fitch)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">ESM (Fitch)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Ireland (Fitch)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Spain (Moody\u2019s)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Iceland (Moody\u2019s)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Austria (DBRS)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Original Post<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Editor&#8217;s Note:<\/strong> The summary bullets for this article were chosen by Seeking Alpha editors.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4615833-us-inflation-data-headline-boc-ponders-another-hike-possible-rbnz-pause?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US This week is all about inflation. Annual inflation will tumble as energy prices drop and due to base effects, but many traders will pay close attention to the core readings. CPI on a monthly basis is expected to increase by 0.3%, higher than May\u2019s pace of 0.1%. The headline annual reading is expected to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":32875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-32874","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Week Ahead - U.S. Inflation Data Headline, BoC Ponders Another Hike, Possible RBNZ Pause | iFintechWorld<\/title>\n<meta name=\"description\" content=\"US This week is all about inflation. 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