The IMF meet this week in Thailand and put out some positive economic projections. The IMF confirmed global growth would be 3.1% in 2026, rising to 3.4%, in 2027. There were caveats, including flagging AI investment and extended hostilities in the Middle East. This was stating the obvious, but underestimates the deficit/debt levels of Western Countries, and the energy crisis which is driving inflation and interest rates higher. German inflation readings were flat, in line with expectations, releasing some pressure on bond and currency markets. The US Dollar eased overnight, allowing the EUR to head back towards 1.1200, while the GBP jumped to 1.3240.The softer reserve allowed for some recovery in commodity currencies, with the NZD reclaiming 0.5600, while the AUD headed back towards 0.7000. The RBA minutes confirmed further rate rises were on the agenda, unless inflationary pressures eased, while local business confidence plunged.
