Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Oil Prices Steady as U.S.-Iran Talks Ease Supply Fears Ahead of Holiday Weekend 
South Korean Stocks Tumble as AI Chip Selloff Hits Asian Markets 
Mary Daly Says AI Uncertainty Clouds Fed Rate Outlook Despite Restrictive Policy 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
China Services PMI Beats Forecasts as Strong Demand Supports June Growth 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Asian Stocks Rebound as Tech Shares Rally on Fed Rate Cut Hopes and Easing Iran Tensions 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Inflation expectations are soaring across the developed world. After the United Kingdom opted out of the European Union in the June referendum, exchange rate declined sharply and gave rise to the inflation expectations; consumer inflation expectation has jumped to 2.75 percent in the UK for the year 2017. While there has been no Brexit in the Eurozone or in the United States, rising commodity prices are giving rise to the concerns and the effects of easy money seem to be kicking in.
In the United States, 5-year 5-year (5y-5y) forward inflation expectations have reached to 1.97 percent in November. That is the highest level since August last year. Similarly, in Eurozone, European Central Bank’s (ECB) preferred gauge 5y-5y forward inflation expectations have reached more than 1.5 percent this month, which is the highest level in eight months.
Concerns have already started surfacing with regard to central bank’s stimulus measures. The market is preparing for a rate hike from the US Federal Reserve in December and lower stimulus from the ECB, when the current measures of bond buying expire in March next year.
