Big Week Ahead: Australia's Rate Decision and US Inflation Data

Central banks and inflation reports take center stage this week, with Australia's rate call and key US price data guiding markets.

This week brings a packed schedule of important economic events that could move global markets. Here's what beginners need to know.

Australia's Central Bank Decision (Tuesday)

The RBA (Reserve Bank of Australia — the country's central bank that sets interest rates) is expected to keep interest rates unchanged.

Money markets (where traders bet on future rates) price a 99% chance rates stay at 4.35%
Inflation (the rate at which prices rise over time) cooled slightly, with prices up 3.9% year-on-year, just above their target
Jobs data was strong, giving the bank room to wait

The RBA has kept a hawkish tone (meaning it's leaning toward higher rates to fight inflation) and hasn't ruled out further hikes.

US Inflation Report (Wednesday)

The US CPI (Consumer Price Index — a key measure of how much everyday prices are rising) is closely watched.

Headline inflation expected to rise 0.1% for the month
Core inflation (which strips out volatile food and energy prices) expected up 0.2%
Apple (AAPL) raising hardware prices by 15-30% is pushing goods prices higher
Falling airline fares and hotel prices help offset the rise

This data helps the Fed (the US Federal Reserve, America's central bank) decide whether to cut rates in September, where markets see a 53% chance of a cut.

Japan's Central Bank Notes (Monday)

The BoJ (Bank of Japan) will release a summary from its recent meeting, where it held rates at 1.00%. Investors want clues on whether more rate hikes are coming.

Other Key Events

Thursday: Norway's central bank decision, UK economic growth figures, and US producer prices
Friday: US retail sales (how much shoppers are spending) and consumer confidence data

Conclusion

This week's central bank decisions and inflation data will shape expectations for interest rates worldwide — affecting everything from loan costs to stock and currency prices.

This is an AI-generated summary. Read the original article at: https://investinglive.com/news/newsquawk-week-ahead/