Slow trading dominated as the Rosh Hashanha holiday on Thursday and Friday along with Labor Day on Monday caused traders and managers to take an additional week off.
The Reserve Bank of Australia held the line on interest rates ‘for the time being’ while 2nd Quarter GDP grew by 1.2% QoQ and 3.3% YoY.
The Bank of Japan held interest rates steady and said that they were prepared to add more monetary stimulus to the economy if needed.
The Bank of Canada hiked rates to 1% and in a brief statement which showed no real bias but gave a mention to a slightly weaker than expected US recovery.
The South African Reserve Bank (SARB) cut its policy rate by 50 bp to 6%. Markets view this rate cut as the final one as the recession was quite mild for South Africa compared to the rest of the globe. Economic growth has been recovering, boosted this year by the World Cup, and now appears to be moderating. The SARB has been in a more restrained rate cut cycle and appears to be having success against inflation as the CPI is now in the 3.5-4% area down from around 11% in 2008.
The Bank of England and the Bank of Korea both kept interest rates at current levels.
Sunday – Basel III meeting
Monday – European Union Industrial Production (July)
Tuesday – US Retail Sales (August), Japan Industrial Production (July), DPJ Leadership Election in Japan
Wednesday – US Capacity Utilization and Industrial Production (August)
Thursday – US PPI (August)
Friday – US CPI (August), Germany Producer Prices (August)
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