BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
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 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
PBoC's recently increased its liquidity as it injected CNY600bn via medium-term lending facility (MLF) on Tuesday, followed by another CNY150bn liquidity injection via short-term liquidity operation (SLO) and CNY400bn via reverse repos this morning, recording the highest daily injection in open market operations (OMOs) in the previous three years. This illustrates that there is a tightening bias in onshore market liquidity conditions.
The central bank had to ease its liquidity as it witnessed capital outflow due to CNY's depreciation. However, as PBoC sells USD and buys CNY in FX market to stabilize the CNY exchange rate, CNY's liquidity should have been exhausted.
"But keep in mind that the bottom line is that China will have to maintain an accommodative monetary policy stance to counter the economic slowdown. That said, RRR cuts are still on the table and CNY will weaken eventually"- Commerzbank
