Asia Focused on Inflation, Credit Data as RBA Decision Looms

The upcoming week in Asia will be dominated by several key economic releases and central bank decisions. The Reserve Bank of Australia's policy meeting is expected to leave its cash rate unchanged at 4.35%, with a close watch on its statement and updated forecasts to see if the RBA maintains a hawkish bias.

China's inflation and credit data will set the initial tone, with July CPI and PPI expected to moderate slightly, while aggregate financing growth could be impacted by government-bond issuance and soft private-sector borrowing driven by subdued domestic demand.

In India, July CPI is forecast to rise slightly to around 4.4%yoy, with a weak monsoon potentially exacerbating the situation. The trade deficit may remain wide amid firm imports.

GDP prints out of Singapore, Malaysia, Hong Kong, and Taiwan will provide additional signals on regional growth and price dynamics. In Japan, the BOJ's Summary of Opinions from its 30-31 July meeting will be closely examined for policymakers' assessment of inflation, energy costs, and the path toward further policy normalization.