The Reserve Bank of Australia will likely raise its interest rate by 25 basis points to 4.35% on Tuesday to tame stubbornly high inflation, although a Reuters poll of economists showed the decision to hike or hold was on a knife's edge.

While the latest monthly measure of consumer prices showed inflation slowed to 5.6% in May from 6.8% in April, it was still well above the RBA's 2-3% target range, suggesting more tightening may be required.

Since a surprise pause in April and consequent hikes in May and June, economists in Reuters polls have been mostly divided in recent months over the RBA's next move.

Indeed, the June 28-30 survey showed there was a near split among economists with 16 of 31 expecting the central bank to hike its official cash rate to 4.35% at the July 4 meeting. The remaining 15 predicted a pause. (Continue Reading – Reuters)

Japanese business sentiment improved in the second quarter as raw material costs peaked and the removal of pandemic curbs lifted factory output and consumption, a central bank survey showed, a sign the economy was on course for a steady recovery.

Companies expect to increase capital expenditure and project inflation to stay above the Bank of Japan’s 2% target five years ahead, the quarterly “tankan” showed, offering policymakers hope that conditions for phasing out their massive monetary stimulus may be gradually falling into place.

The headline index measuring big manufacturers’ mood stood at plus 5 in June, bouncing back from a two-year low of plus 1 hit in March in a sign firms were recovering from the hit from rising raw material costs and supply disruptions. The reading, which compared with a median market forecast for plus 3, was the highest since Dec. 2022. (Continue Reading – CNBC)

China is on a natural gas shopping spree, and officials are happy for importers to keep striking deals even after a global energy crisis has eased.

The government continues to back efforts by state-owned buyers to sign long-term contracts and even invest in export facilities, in order to bolster energy security through the middle of the century, according to people who have had meetings with policymakers. 

The nation is on track to be the world’s top importer of liquefied natural gas in 2023. And for the third straight year, Chinese companies are agreeing to buy more of it on a long-term basis than any single nation, according to data compiled by Bloomberg News. (Continue Reading – Bloomberg)