ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Asian Stocks Slide as Chip Shares Tumble Ahead of Key U.S. Jobs Report 
BOJ Rate Hike Expected to Boost Yen, Impact USD/JPY and Nikkei 
Japan Signals Readiness to Act on Yen as Intervention Speculation Grows 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Moody’s Says Peru’s President-Elect Keiko Fujimori Could Boost Investor Confidence 
Gold Price Surges Above $4,120 as Weak US Jobs Data Lowers Fed Rate Hike Expectations 
Trump Administration Declines USMCA Renewal, Opens Talks on New Trade Changes 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
The Bank of Japan (BoJ) is expected to keep its monetary policy unchanged throughout this year despite the rising upward pressure on global bond yields. This implies the central bank maintaining its target for the short-term policy interest rate unchanged at -0.1 percent and continues to purchase Japanese government bonds (JGBs), so yields on 10-year JGBs remain around zero percent, Danske Bank reported.
Japan’s economic recovery remains solid and GDP expanded 0.3 percent q/q in Q4 16, from 0.2 percent q/q in Q3. Thereby, GDP expanded by 1.0 percent y/y in 2016, in line with estimate. The Japanese economy is still expected to grow above trend in coming years, supported by the government’s fiscal stimulus package.
"We expect the BoJ to maintain an easing bias but we think it would require significant negative inflation or growth surprises for the BoJ to cut rates further into negative territory," the report said.
