Fed’s Dovish Tone Sends Dollar Lower as Markets Price In More Rate Cuts 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Japan’s Rising Inflation Strengthens Case for a Near-Term BOJ Rate Hike 
ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Asian Stocks Slip Ahead of Fed Decision as China Deflation Concerns Deepen 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Japan’s inflation rose slightly in October, reinforcing expectations that the Bank of Japan (BOJ) may soon move toward tightening its ultra-loose monetary policy. Government data released Friday showed that national core CPI, which excludes volatile fresh food prices, climbed to 3% year-on-year, up from 2.9% in September and in line with market forecasts. Headline inflation also increased to 3%, signaling that price pressures remain persistent across the economy.
A key measure closely monitored by the BOJ — core inflation excluding both fresh food and energy — rose to 3.1% from 3% in the prior month. This reading remains well above the central bank’s 2% target, suggesting that underlying inflationary forces remain strong. Food prices have been a major contributor to this persistent inflation, driven by poor harvests, notably in rice, and rising global grain costs that have pushed up domestic prices throughout the year.
Japan’s sharply weaker yen, which recently touched a 10-month low, has further fueled inflation by raising the cost of imported goods. Higher import bills have amplified overall price increases, making it more challenging for households and businesses already grappling with elevated food and commodity costs.
The continued stickiness in inflation is increasing the likelihood of a BOJ rate hike, with a recent Reuters poll showing that a slim majority of investors expect a move as early as December. This pressure may outweigh the central government’s preference for maintaining accommodative financial conditions, particularly under new Prime Minister Sanae Takaichi. Known as a fiscal dove, Takaichi is expected to ramp up government spending to stimulate the economy. Her election triggered significant weakness in the yen as markets questioned how her administration would finance expanded fiscal initiatives.
As Japan navigates rising prices, a soft currency, and shifting political priorities, investors are watching closely to see whether the BOJ will finally pivot away from its long-standing ultra-easy stance.
