U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
Bank of Japan’s Upcoming Rate Decision: Insights and Key Takeaways
The Bank of Japan (BOJ) is concluding a two-day policy meeting this Thursday. This review follows a recent election loss for Japan’s ruling coalition, intensifying political uncertainties that could affect BOJ’s monetary policy decisions.
Is a Rate Hike on the Horizon?
Earlier in 2024, the BOJ ended negative interest rates and raised its short-term policy target to 0.25%. While inflation currently sits at 2%, the central bank remains cautious about further rate increases. BOJ Governor Kazuo Ueda has emphasized the need to monitor global economic risks, including the U.S. market, before any additional hikes. As a result, experts predict a steady rate outcome in October, with BOJ preferring policy stability until Japan’s political direction becomes clearer.
Key Signals for Market Observers
The BOJ's quarterly report will detail its latest economic and inflation projections, providing potential clues for future rate actions. Analysts believe inflation will likely hover around the 2% target until at least March 2027, meeting the conditions for potential hikes but not guaranteeing them. Additionally, Ueda's post-meeting briefing on Thursday may offer guidance on the BOJ's stance, especially concerning Japan’s currency depreciation, which affects import costs and inflation.
Next Steps in Rate Hikes
The BOJ’s next meetings are scheduled for December and January. While most economists anticipate a rate hike by March, factors like wage growth, global demand, and Japan’s political climate could influence the timing.
