Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Global Forex Markets Brace for Fed Decision as Yen Extends Weakness 
US Signals Openness to New Trade Deal as Brazil Shows Willingness, Says USTR Greer 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Most economists now believe the Bank of Japan (BOJ) will keep interest rates steady through September, as it monitors the economic impact of U.S. tariffs imposed by President Donald Trump. According to a Reuters survey conducted from May 7–13, 95% of economists (59 out of 62) forecast no change at the upcoming June 17 policy meeting. This marks a shift from last month, as 67% now expect the benchmark rate to stay at 0.50% in Q3, compared to just 36% in April.
Despite the hold, 52% of respondents still anticipate at least a 25-basis-point hike by year-end, maintaining the December forecast at 0.75%. The revised median forecast for end-September now stands at 0.50%, down from 0.75% last month. Markets have already priced in a 19 basis point increase for 2025, signaling investor expectations for tightening.
BOJ officials, including Deputy Governor Shinichi Uchida, remain cautiously optimistic, projecting continued growth in wages and prices despite near-term economic slowdown and inflation moderation. Economists like Masato Koike of Sompo Institute Plus stress that the BOJ needs time to assess Trump’s trade policies before proceeding with further hikes.
Trump’s April 2 tariff announcement included a 10% levy on all nations except Canada, Mexico, and China. Japan faces a 24% rate starting in July unless a trade deal is secured. Japanese officials, including chief negotiator Ryosei Akazawa, aim to resume talks with U.S. counterparts in mid-May.
A majority of analysts (55%) expressed approval or partial approval of Japan’s handling of tariff negotiations, reflecting cautious confidence in the government’s approach. Overall, the BOJ appears set to proceed carefully, balancing domestic monetary goals with external geopolitical pressures.
