Just how quickly are wages growing at for US workers? It could have a bearing on American interest rates.
In August, they rose 2.9% compared to a year ago. It was the fastest wage growth since June 2009. That could be one of the stats that the Fed is monitoring closely, especially when job creation is high, and unemployment is low.
Next week, the US will report hourly earnings, non-farm payroll and unemployment rate. They could provide further clues as to whether the US Fed is on course for another interest-rate hike later this year.
The European Union will also provide employment data, which is expected to show that the rate of unemployment remained unchanged at 8.2% in July. It would be the third straight month that the unemployment rate has been this low since November 2008.
The Reserve Bank of Australia will announce its latest interest-rate decision. Given the absence of inflationary pressures, the central bank is expected to keep the cash rate at a record low of 1.5%. The inflation rate in Australia, which was 2.1% in June, remains below the long-term average of 5%.
An interest-rate decision is also expected from the Reserve Bank of India. Last month, the bank increased its key rate by a quarter point to 6.5%. It could raise the cost of borrow by another quarter point next week.
And finally, Singapore’s Purchasing Managers’ Index is expected to have rebounded in August. Last month, activity fell to its lowest level since June 2017, when exports declined at their steepest rate in two years.
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