Despite the improvement in some economic indicators, the Australian economy’s progress lags that of most other developed countries. In view of this, the International Monetary Fund (IMF) reduced its growth forecast for Australia’s economy to 2.2% in October, from the 3% projection given merely six months back. Amid such news, all eyes are on the upcoming economic indicators.

November 2: Australia Balance of Trade (September), UK Interest Rate Decision

Australia’s trade surplus widened more than 22% to A$0.99 billion in August, after having

shrunk unexpectedly by a staggering 48% in July. The August trade surplus came ahead of market expectations of A$0.88 billion, with a rise in exports and practically no change in imports. The nation’s trade surplus is widely expected to narrow marginally to A$0.875 billion in September. Meanwhile, the Bank of England (BoE) kept its official bank rate unchanged at a record low of 0.25% at its September meeting. Although the committee continued with the same level of monetary stimulus, it mentioned that some withdrawal seemed likely over the next few months.

November 7: RBA Interest Rate Decision

The Reserve Bank of Australia (RBA) left its benchmark cash rate unchanged at a record low of 1.5% at its October meeting. There had been speculations of an increase in the rate, following interest rate hikes by other nations. Policymakers pointed out, however, that the monetary conditions in other developed nations had eased much more than in Australia since the financial crisis. Expectations are now for the RBA to keep its benchmark rate unchanged at its November meeting.

November 8: Australia Business Confidence (October), China Balance of Trade (October)

Australia’s business confidence rose meaningfully to 7 in September, after having plummeted to 5 in August, and came in better than the estimate. Expectations are for the index to remain at 7 in October. Meanwhile, China’s trade surplus narrowed again in September to US$28.61 billion, from US$41.99 billion in August, and missed expectations of a US$ 39.50 billion surplus. The September figure represented the smallest trade surplus since March.