Weekly Market Preview
Friday, 14th February 2025
This week, markets are closely watching a series of economic data releases and major central bank meetings.
The RBA is expected to cut interest rates by 25 basis points, lowering the rate from 4.35% to 4.10%. This decision follows a decline in Australian inflation from 2.8% in Q3 2024 to 2.4% in Q4 2024.
The RBNZ is projected to announce a 50-basis-point rate cut, reducing rates from 4.75% to 3.75%. This substantial decrease is driven by stabilizing inflation at 2.2% in Q3 and Q4 2024 and the country’s technical recession, with negative GDP growth in both quarters. The RBNZ aims to stimulate the economy by aligning interest rates with the neutral range of 2.5%–3%.
Investors will also be closely monitoring UK inflation, which is expected to ease slightly from 2.5% in December to 2.4% in January, while core inflation is projected to decline from 3.2% to 3.1%. This moderation increases the likelihood of a Bank of England rate cut by 25 basis point in the second quarter of this year. It is worth nothing that the BoE has already implemented a 25-basis-point rate cut at its first meeting of the year.
Monday, 17th of February
Tuesday, 18th of February
Wednesday, 19th of February
Thursday, 20th of February
Friday, 21st of February