BOJ Seen Moving Toward December Rate Hike as Yen Slides 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
The Bank of Japan (BOJ) is set to announce a cautious approach to quantitative tightening (QT), considering a slower pace of bond purchase reductions for fiscal 2026 to avoid market disruption. At its policy meeting concluding Tuesday, the BOJ is widely expected to keep short-term rates at 0.5% and review its bond tapering strategy, which currently reduces purchases by ¥400 billion ($2.77 billion) per quarter.
Sources indicate the central bank may lower the tapering pace to ¥200 billion ($1.38 billion) per quarter starting next fiscal year. This move reflects concerns over rising long-term bond yields and requests from market participants to ease the taper’s intensity. If adopted, monthly bond purchases could fall to around ¥2 trillion by March 2027.
Governor Kazuo Ueda is expected to reaffirm the BOJ’s commitment to interest rate normalization while balancing risks from escalating U.S. tariffs and geopolitical tensions, particularly the Iran-Israel conflict. Ueda will hold a press conference at 3:30 p.m. JST to detail the bank’s decision.
Despite global uncertainties, Japan’s economy continues to show inflationary momentum. Core consumer inflation hit 3.5% in April, driven by surging food prices and rising labor costs. Businesses are responding with wage increases, supporting the BOJ’s case for continued tightening. However, the board remains cautious as export demand weakens under global trade pressure.
The central bank ended yield curve control in 2024 and began tapering its massive asset purchases, aiming to halve monthly bond buying to ¥3 trillion by March 2026. Still, with inflation exceeding the 2% target and fresh economic headwinds looming, the pace of policy normalization remains delicate. Markets now await Ueda’s guidance on potential timing for the next rate hike.
