The Reserve Bank of Australia raised the cash rate by 25bps to 2.6% on Tuesday (Oct. 4), defying market estimates of a 50bps hike while bringing borrowing costs to a level not seen since July 2013. The move followed a 50-bps hike each in the prior 4 months and a 25-bps rise in May.
“The Board is committed to returning inflation to the 2-3 percent range over time. Today’s increase in interest rates will help achieve this goal and further increases are likely to be required over the period ahead,” RBA Governor Philip Lowe said.
Consumer Price Index (CPI) for the Ku-area of Tokyo, a leading indicator of nationwide inflation, rose 2.8% in September from a year earlier, exceeding the central bank’s 2% target for a fourth straight month and marking the biggest gain since 2014, , the Statistics Bureau of Japan’s preliminary report released on Tuesday showed.
Fitch Ratings expects the recovery after Hurricane Ian to go at a “slower pace” in comparison to past hurricanes. The reasons for such expectations are “the greater numbers of uninsured homeowners and businesses as a result of the higher cost of insurance coverage/policy non-renewals, tight labor market conditions, inflationary pressures and supply chain issues,” the rating agency shared on Monday (Oct. 3) in a report. The report also noted that “ratings of US public finance issuers affected by Hurricane Ian will largely remain stable.”
Russia’s manufacturing activity grew at the fastest pace in three-and-a-half years in September, supported by increases in production and new orders. The factory Purchasing Managers’ Index posted 52.0 in September, up from 51.7 in August, survey data from S&P Global showed on Monday (Oct. 3). Business confidence strengthened amid greater new order inflows, with the level of positive sentiment reaching its highest since March 2019.