The Week Ahead

• The military confrontation between the US and Iran escalated over the weekend, with President Trump declaring the ceasefire over and the Strait of Hormuz now closed until further notice.
• Locally, a busy week of data lies ahead, with Westpac consumer sentiment and the NAB business survey out tomorrow ahead of inflation expectations later in the week.
• Markets continue to look through shorter-term inflationary pressures, with the longer-term outlook still pointing to rate cuts from 2027, though the timing remains the key question.
• In the US, Chair Warsh testifies before the House and Senate this week, which may offer further direction on the US near-term rates outlook with hikes broadly expected, along with CPI, PPI and industrial production releases.