Fed Meeting Minutes Align with Expectations; PCE Price Index and GDP in Crosshairs.

Wednesday, 28 Feb, 03:00 – RBNZ Interest Rate Decision

In November, the RBNZ maintained its interest rate at 5.50%. Nevertheless, the central bank had earlier indicated a possible rate increase in 2024, citing persistent inflation. Despite the economy technically being in a recession, global markets are bracing for a potential unexpected interest rate hike in February.

Wednesday, 28 Feb, 15:30 – US GDP (QoQ)(Q4)

The U.S GDP report surpassed the economist’s expectation in the preliminary results by a 3.3% increase against the 2.0% forecast for the fourth quarter. Following the festive season in the 4th quarter, Americans showed a continued willingness to spend freely despite high interest rates and price levels that have frustrated many households. With the economy continuing to outperform, the economy is expected to be robust in the near term.

Thursday, 29 Feb, 15:30 – US Core PCE Price Index (YoY) (Jan)

The Fed’s preferred inflation gauge has softened to 2.9%, slightly below the market forecast of 3%. While the Fed welcomes the slowdown, the pace remains elevated and with inflation data such as PPI and CPI outperforming expectations, Fed’s battle against inflation is far from over.

Friday, 1 March 2024, 17:00 – US ISM Manufacturing PMI (Feb)

The U.S Manufacturing PMI came in higher against the previous reading and expectation of 47.1 and 47.2 respectively in January. While the sector remains in contraction for 15th month straight, it is on the path of recovery with recent uptick in new orders and stable production levels, according to a survey by the ISM.