US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
BOJ's Current Rate Stance
A recent Reuters poll reveals that the Bank of Japan (BOJ) will likely maintain its interest rate at 0.25% through December 2024. This decision comes despite nearly 90% of economists anticipating a rate hike by the end of March 2025.
Economic Context and Prime Minister's Influence
With global central banks moving toward rate cuts, the BOJ faces challenges in policy normalization amid uncertainty about the new political leadership's monetary preferences. Prime Minister Shigeru Ishiba, who took office on October 1, emphasized that the Japanese economy is not ready for further rate hikes, a shift from his previous support for the BOJ's gradual unwinding of extreme monetary stimulus.
Forecasts for Future Rate Changes
In the Oct. 3-11 poll of 49 economists, 25 predicted that the BOJ would hold its rate steady until the end of the year. However, 87% of respondents expect a rise to 0.50% by March 2025, contingent on wage increases and the U.S. economy's performance.
Mari Iwashita, chief market economist at Daiwa Securities, indicated that the BOJ's decision may be postponed until March, as it assesses the implications of the U.S. administration's policies and annual wage negotiations.
Conclusion
Japan's economy is showing signs of resilience, with a reported annualized growth of 2.9% in Q2 2024. However, economists urge caution regarding Ishiba's economic policy, with 21 out of 29 stating it is too early to evaluate its effectiveness. The BOJ's approach remains crucial as it navigates domestic and international economic pressures.
