U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Asian Stocks Slide as AI Valuation Fears and BOJ Uncertainty Weigh on Markets 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Most economists now believe the Bank of Japan (BOJ) will keep interest rates steady through September, as it monitors the economic impact of U.S. tariffs imposed by President Donald Trump. According to a Reuters survey conducted from May 7–13, 95% of economists (59 out of 62) forecast no change at the upcoming June 17 policy meeting. This marks a shift from last month, as 67% now expect the benchmark rate to stay at 0.50% in Q3, compared to just 36% in April.
Despite the hold, 52% of respondents still anticipate at least a 25-basis-point hike by year-end, maintaining the December forecast at 0.75%. The revised median forecast for end-September now stands at 0.50%, down from 0.75% last month. Markets have already priced in a 19 basis point increase for 2025, signaling investor expectations for tightening.
BOJ officials, including Deputy Governor Shinichi Uchida, remain cautiously optimistic, projecting continued growth in wages and prices despite near-term economic slowdown and inflation moderation. Economists like Masato Koike of Sompo Institute Plus stress that the BOJ needs time to assess Trump’s trade policies before proceeding with further hikes.
Trump’s April 2 tariff announcement included a 10% levy on all nations except Canada, Mexico, and China. Japan faces a 24% rate starting in July unless a trade deal is secured. Japanese officials, including chief negotiator Ryosei Akazawa, aim to resume talks with U.S. counterparts in mid-May.
A majority of analysts (55%) expressed approval or partial approval of Japan’s handling of tariff negotiations, reflecting cautious confidence in the government’s approach. Overall, the BOJ appears set to proceed carefully, balancing domestic monetary goals with external geopolitical pressures.
