RBA Minutes Signal Growing Caution on Future Rate Cuts Amid Persistent Inflation 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
BOJ’s Noguchi Calls for Cautious, Gradual Interest Rate Hikes to Sustain Inflation Goals 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
U.S. Cyber Monday Online Sales Surge Past $9.1 Billion as Holiday Shopping Momentum Builds 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Dollar Slips as Weak U.S. Manufacturing Data Increases Pressure for Fed Rate Cuts 
FOMC Minutes Expected to Reveal Deep Policy Divide as Markets Eye December Rate Cut 
The Bank of Japan (BOJ) is widely anticipated to keep its benchmark interest rate steady at 0.5% during its July 31 policy meeting, maintaining a hawkish tone amid persistent inflation and ongoing political and trade uncertainties. This would mark the fourth consecutive meeting without a rate change following January’s 25-basis-point hike.
Market analysts suggest that while the BOJ is cautious about immediate hikes, it has signaled readiness to raise rates later in 2025, particularly if Japan’s economy and inflation strengthen. Political instability is a key factor, as Prime Minister Shigeru Ishiba’s Liberal Democratic Party recently lost its upper house majority, raising concerns about potential legislative gridlock.
Trade tensions also weigh on the outlook. Despite Tokyo and Washington signing a trade deal in July, Japan still faces a 15% U.S. tariff on exports, with details of the agreement yet to be released. ANZ and Capital Economics both forecast the next rate hike in October, followed by another in early 2026, provided economic conditions support tightening.
For markets, any hawkish signals could trigger volatility. The Nikkei 225 has surged near record highs following the U.S.-Japan trade agreement, while the TOPIX index hit all-time peaks. However, stronger BOJ guidance could prompt profit-taking and pressure export-focused stocks if the yen appreciates.
The Japanese yen (USDJPY) has weakened recently on a stronger dollar but is likely to strengthen if the BOJ signals further tightening, making the currency more attractive to investors. A hawkish shift could push USDJPY lower as traders price in higher Japanese yields.
This policy decision is closely watched by global markets, given Japan’s critical role in Asia’s economic landscape and ongoing trade negotiations with the U.S.
