South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
The Bank of Japan (BOJ) is expected to hold off on raising interest rates until at least July, according to a majority of economists, as policymakers assess the impact of recent tightening on Japan’s fragile economic recovery. More than 75% of economists surveyed believe the BOJ’s key interest rate will rise to 1% or higher by September, up from the current three-decade high of 0.75%, highlighting a gradual but cautious shift in Japan’s monetary policy outlook.
Despite this expected increase, the BOJ remains out of step with most global central banks, many of which have spent recent years cutting borrowing costs. Economists anticipate the BOJ will eventually raise rates several more times, with a median forecast for the terminal rate at 1.5%, though opinions vary widely depending on inflation trends, wage growth, and currency movements.
Japan’s new Prime Minister, Sanae Takaichi, has added political uncertainty to the outlook. Known as a fiscal and monetary dove, Takaichi unsettled markets after taking office in October by emphasizing her preference for low interest rates and asserting influence over monetary policy direction. Her plan to dissolve parliament and call a snap general election has further reinforced expectations that the BOJ will avoid aggressive action in the near term, especially as some of her advisers have warned against additional rate hikes.
Most economists polled by Reuters between January 6 and 13 expect the BOJ to keep rates unchanged at its January and March meetings. The central bank raised rates by a quarter point in December, ending an 11-month pause since its previous hike in January 2025. Analysts argue that more time is needed—around six months—to evaluate how the latest increase is affecting the real economy, unless a weaker yen significantly boosts imported inflation.
Among respondents who specified timing, July emerged as the most likely month for the next hike, followed by June. By year-end, the median forecast remains at 1%, although nearly a quarter of economists see rates reaching 1.25%. Overall, expectations suggest one or two rate hikes this year, with moderate risks of the BOJ falling behind the curve in controlling inflation.
