Bank of Japan Eyes April Rate Hike Despite Inflation Dip, ING Says 
Asian Markets Rally as Oil Prices Tumble and Middle East Peace Hopes Emerge 
Trump Tariffs Show Minimal Economic Impact but Boost Federal Revenue, Study Finds 
Bank of Japan Governor Signals Gradual Progress Toward 2% Inflation Target 
Wall Street Slides as Iran War Uncertainty, Oil Surge, and AI Fears Rattle Markets 
Middle East War Rattles Global Markets as Oil Tops $100 and Dollar Surges 
UK Consumer Confidence Weakens Amid Middle East Conflict and Rising Living Costs 
Australia's Inflation Eases in February but Core Pressures Persist 
Federal Reserve Balance Sheet Reduction: Brookings Research Outlines Possible Path Forward 
Paraguay Central Bank Holds Interest Rate at 5.5% Amid Slowing Growth 
RBA Raises Cash Rate to 4.10% in Closest Vote Since Transparent Voting Began 
Gold is meant to be a ‘safe haven’ in uncertain times. Why is it crashing amid a war? 
Oil Prices Plunge Over 6% as Middle East Ceasefire Hopes Ease Supply Fears 
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.
