KOSPI Rebounds 20% as Samsung, SK Hynix Lead South Korea Stock Rally 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
Gold Prices Slip From Two-Month High as Inflation and Fed Outlook Drive Markets 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
US Dollar Slips as Softer PPI Data Eases Fed Rate Hike Expectations 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Trump Imposes New Tariffs on Drone Imports Over US Security Concerns 
Trump Imposes New US Tariffs on Drone Imports Over National Security Concerns 
Gold Prices Slip From 10-Week High as Fed and Hormuz Risks Shape Outlook 
China Automakers Accelerate Global Expansion as Domestic Car Sales Slump 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Add as a preferred source on Google
The Bank of Japan (BOJ) is widely expected to keep its short-term benchmark interest rate at 0.75% following its March 19 policy meeting, marking a pause after its 25 basis point hike last December. While no immediate rate change is anticipated, markets are watching closely for any hawkish signals from policymakers amid persistent inflation pressures and a weakening yen.
Japan's core inflation has recently dipped below the BOJ's 2% annual target, largely due to subdued consumer spending. However, the central bank projects a rebound later in 2026, driven in part by rising global energy prices linked to the ongoing U.S.-Israel conflict with Iran. The yen has come under significant pressure as a result, given Japan's heavy reliance on oil imports — a dynamic that could push the BOJ toward a more aggressive monetary stance to stabilize the currency and contain imported inflation.
On the economic front, Japan delivered a stronger-than-expected fourth quarter in 2025, giving the BOJ greater flexibility to consider future rate increases. That said, uncertainty surrounding spring wage negotiations is keeping the central bank cautious in the near term. Governor Kazuo Ueda recently acknowledged that underlying inflation is trending back toward target on the back of solid wage growth, though he stopped short of reaffirming the BOJ's commitment to continued tightening — possibly reflecting political pressure from Prime Minister Sanae Takaichi's administration to maintain accommodative conditions.
ANZ analysts anticipate a 25 basis point hike in April, with the BOJ expected to signal its readiness to act at this week's meeting. Since exiting ultra-loose monetary policy in early 2024, the BOJ has raised rates by a cumulative 85 basis points. For equities, the Nikkei 225 — up nearly 6% year-to-date — could face headwinds if the central bank adopts an overtly hawkish tone, though any pullback may be cushioned by strength in bank stocks, which tend to benefit from a rising rate environment.
