BOT projects 2026 GDP growth at 2.4% (June: 2.3%) and 2027 GDP growth at 2.1% (June: 1.8%). It forecasts overall inf at 2.1% in 2026 (previously 2.2%) and 1.3% in 2027 (June: 1.4%).

Reserve Bank of Australia Governor Bullock said the Middle East conflict has had a relatively limited impact on economic activity so far.

Major global banks overwhelmingly expect the Federal Reserve to pause at the October FOMC and leave a 25bp hike penciled in for December. Goldman Sachs, CITIGROUP, Crédit Agricole, Nomura, TD Securities, Huatai Securities, Morgan Stanley and BNY MELLON forecast an October pause and a December +25bp, with several groups keeping a further 25bp move in March conditional on inflation. TD and Morgan Stanley explicitly expect two more 25bp hikes (Dec and Mar). BNY MELLON sees the peak rate a little above 4.5%, implying roughly three additional hikes into next year. CITIGROUP warns that sustained equity weakness that sharply tightens financial conditions would materially raise the odds of the Fed pivoting toward cuts. MOODY'S says the Fed should not hike this week, citing rising economic risks and bond-market signals that reduce the need to tighten. Bank of America remains a notable outlier, arguing an October hike would preserve optionality for December and better address inflation risk.