China reopening, price pressures moderating

The dismantling of China’s Zero-Covid regime will encourage more Chinese tourists and students to come to Australia and New Zealand. That could eventually boost Australia’s GDP by nearly 1%-pt, though the recovery will be spread over a few quarters. And while it could put upward pressure on rents at a time when housing vacancy rates are already very low, the latest business surveys point to a sharp moderation in inflationary pressures.