UK finance minister urged investment in artificial intelligence to drive transformation of the civil service.

Markets expect the RBNZ to hike 25bps today, with most major banks flagging further tightening risk as inflation and external pressures rise. Standard Chartered cites inflation at 3.7% (above the 1–3% target) and sees significant upside risk to rates. Capital Economics also expects a 25bp move and has pulled forward its final 25bp hike from Mar 2027 to Dec 2026. TD Securities points to sharply worse imported inflation and NZD weakness, keeps Dec and Feb 25bp hike calls and raises its terminal OCR to 3.50% (from 3.25%). ANZ, ASB and Westpac each forecast 25bp today plus additional 25bp moves in Dec and Feb, taking OCR to about 3.50% by early 2027. BNZ expects 25bps now and a higher peak OCR of 3.75%. ING expects a 25bp move and a hawkish statement, but sees the next hike more likely in Feb 2027 than Dec. The RBNZ shadow committee majority recommends 25bps on rising fuel costs and NZD weakness, though some members prefer to wait for earlier hikes to feed through. A Reuters survey found 22 of 27 economists expect a 25bp October hike; among 23 respondents, 13 expect the OCR to remain at 3.00% at year-end while nine expect it to rise to 3.25% in Dec.

Huayuan Securities assistant director of research and chief fixed-income and banking analyst Liao Zhiming said China’s A-share market may have entered a new allocation window after sustained pullbacks. He cites simultaneous improvement in four conditions: valuations, corporate earnings, capital structure and cross-asset valuation. CSI300 trades at 12.8x PE, near the 0.7th percentile over the past year and the 50th percentile over the past decade; the ChiNext composite PE has fallen to the 10th percentile over five years. All-A parent-net profit rose about 16% in 1H and Liao expects high profit growth to persist into Q3. With deposit rates and bond yields at historic lows and household deposits topping 170 trillion yuan, equity investment looks more attractive; monetary policy remains moderately loose with the possibility of future RRR and rate cuts and fiscal spending likely to accelerate. He recommends steady, phased positioning for medium-to-long-term opportunities amid rising market divergence.