- Markets are anticipating an action-packed week.
- UK would be coming up with its GDP estimates.
- Both US and China would be announcing their respective inflation numbers.
In contrast to the markets’ flat trend last week, it is going to be a high-octane week in terms of macro announcements. The packed week will see Australia’s budget being put forth, the UK’s growth numbers being announced and different central bank chiefs delivering speeches.
Here are the four most important events slated this week:
Australia Federal Budget: Treasurer Josh Frydenberg, will present the 2021-22 Federal Budget on Tuesday. The budget will focus on the official economic forecasts as the country continues to emerge from the 2020 hit of COVID-19. The budget will also outline the plans for stimulus and reforms in the economy. Mr Frydenberg and Prime Minister Scott Morisson have repeatedly said that it is going to be a ‘jobs budget’.
UK GDP: In a development that can shape up the United Kingdom’s monetary policy decision, the National Institute of Economic and Social Research will release the GDP estimates of the country -- an estimate of growth over the last three months. The report comes out a month before the official announcement. According to consensus among experts, the country is expecting its economy to contract by 1.8 % in January-March quarter.
US inflation: On Wednesday, the US Bureau of Labor Statistics will announce the retail inflation numbers for April in the world’s largest economy. A measure of price movements by comparison, it is one of the two metrics that determine the monetary policy of any central bank. The estimates peg the numbers at 0.3%, excluding food and energy.
China Inflation: The world’s second largest economy will also announce its retail inflation numbers on Tuesday. The analysts expect a deflation of 0.2% in the country. As Chinese economy didn’t go through contraction in 2020, it gives a larger legroom to the country’s central bank as well.