US consumer inflation will not derail next rate cut; China outlines fiscal stimulus

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US inflation date for September contained two surprises: CPI went up 0.2% m/m, against market expectations for 0.1% m/m, and core inflation rose by 0.3% m/m vs expectations for 0.2% m/m. Positively, shelter inflation is slowing meaningfully. The latest print is unlikely to derail the downward interest rate trajectory, and the US Federal Reserve is expected to cut by 25 bps at its November meeting.
China’s Finance Minister has outlined areas where the government intends to deliver fiscal stimulus. However, he gave no details, which are only expected to be unveiled after China’s parliament meets. These steps follow government’s previously-announced reductions in interest rates. The Chinese authorities are focusing on stabilizing the economy to achieve their annual growth target of 5%.
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14 Oct English South Africa Investing · Business News

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