Economic wrap: FOMC should remain on hold - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US housing starts fell 5.8% in August (vs -1.7% expected), and building permits fell 0.4% (vs +1.8% expected). The weakness was concentrated in the southern regions.

Economic Event Risks Today

NZ migration probably remained elevated in August but the monthly pace of gains will have slowed again slightly.

Australia’s Westpac-MI leading index is below trend but has improved markedly in recent months.

Bank of Japan is likely to cut the policy rate (deposit rate) by 10bps from -0.1% to -0.2-% but the primary focus will be on the outlook for policy, particularly the longevity of asset purchases.

FOMC should remain on hold. The press conference and forecasts will be closely watched, particularly the terminal Fed funds rate."