BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Philippine GDP Growth Slows to 2.3% in Q2 
US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
The Bank for International Settlements (BIS) has called on central banks, including the Federal Reserve and European Central Bank (ECB), to rethink their interest rate strategies to prevent inflation surges like those seen post-pandemic. Outgoing BIS chief Agustin Carstens emphasized the need for "policy framework reviews" to address inflation risks more effectively.
Carstens suggested that central banks adopt scenario analysis over traditional forward guidance, ensuring they can tighten monetary policy decisively when inflation rebounds. He also urged policymakers to reconsider "make-up strategies," where inflation undershoots are offset by overshoots—a practice that contributed to record-high inflation following COVID-19 and the Russia-Ukraine war.
The recent inflation crisis fueled cost-of-living issues and political upheavals, with many governments in the U.S. and Europe facing electoral consequences. Public resentment over rising prices has also intensified scrutiny on central banks, raising concerns about their independence.
The Fed and ECB are set to complete policy reviews by mid-year, though neither plans to alter their 2% inflation targets. Carstens warned that allowing inflation to exceed targets could erode public trust in central banks and hinder their ability to manage economic stability.
