Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
BOJ May Raise Japan Growth Forecast While Keeping Focus on Inflation Risks 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
The Bank of Japan (BOJ) is expected to keep interest rates steady on Thursday, signaling caution as U.S. tariffs continue to threaten Japan's fragile economic recovery. Governor Kazuo Ueda, after meetings in Washington where the IMF downgraded global growth forecasts, reiterated the BOJ’s intent to raise rates only if moderate recovery and stable inflation towards the 2% target are maintained.
Although the BOJ is set to lower its growth forecasts, insiders told Reuters that risks from U.S. trade policies are unlikely to derail rising wages and inflation trends essential for future hikes. However, mounting trade tensions could lead major exporters to pause wage increases next year, delaying the path to policy normalization.
A senior IMF official warned that tariff-related uncertainties could slow growth and inflation, projecting a delay in further BOJ rate hikes. The central bank is anticipated to maintain short-term rates at 0.5% and push back its forecast for achieving 2% inflation beyond fiscal 2025.
Trump’s tariffs, notably the 25% auto duty, have heavily impacted Japan's export-driven economy, complicating recovery. Citi Research downgraded its BOJ hike outlook, citing intensified external risks.
Despite external pressures, the BOJ faces domestic inflation concerns, with Tokyo’s core inflation hitting a two-year high in April. Analysts suggest the BOJ must cautiously keep rate hike expectations alive to curb yen depreciation, which has drawn past criticism from Washington.
Although Japan avoided direct U.S. demands for a stronger yen last week, U.S. Treasury Secretary Scott Bessent emphasized ongoing U.S. interest in currency matters after bilateral talks in Washington.
