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(CEP News) - Monday evening is all about central banks for the Asian Pacific markets. The Bank of Japan will announce its interest rate decision and the Reserve Bank of Australia will release the minutes from the August monetary policy meeting.
The consensus is for the Bank of Japan to hold rates steady at 0.50%. Economists from Desjardins wrote in their weekly report that weak economic growth is going to trump rising inflation concerns. "Japan's latest economic statistics are not promising. Its real GDP even fell by an annualized 2.4% in the second quarter. Under these circumstances, the Bank of Japan should keep its main key rate unchanged at 0.50%, even though the annual inflation rate went up to 2% in June," they wrote. Turning to Australia, Alex Joiner, an economist from ANZ, said markets are already expecting the Reserve Bank of Australia to cut rates and the minutes should continue to reinforce the bank's next move. "Short of actually giving the date of the impending rate cut there is little more the RBA needs to say to convince the market of what is coming," he wrote in a research note. "The minutes next week are only expected to re-affirm the dovish sentiment that has characterised the RBA's recent statements." All times in EDT: Monday 21:30 AU Preliminary BoP Imports (M/M) (SA) July Prior: -2.0% 21:30 AU Reserve Bank's Board August Minutes August 18 JP BOJ Interest Rate Announcement Exp: 0.50% Prior: 0.50% By Neils Christensen,
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