ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
The Bank of Japan (BoJ) was a bit late today in announcing its decision, so the financial market was speculating that something big might be coming today. However, the central chose to tweak its current Qualitative and Quantitative Easing (QQE) that introduce fresh dosage of stimulus. According to the statement,
- Interest rates were kept on hold at minus 0.1 percent, although further rate cuts are not ruled out.
- The scale of its QQE program was also kept on hold, with overall asset purchases at ¥80tn a year. However, the central bank the scrapped the maturity target in its bond-buying program, which should ease the pressure on banks as a consequence of negative interest rates. Currently, the average remaining maturity of the government bonds the BoJ buys is set at 7-12 years.
- The timeframe for reaching 2 percent inflation target, which has been repeatedly pushed back since being first announced in April 2013, has now been set as “the earliest possible time”.
Before the announcement, the yen traded as strong as 101 per dollar, however, after the policy, it has somewhat weakened due to yield curve control by the BoJ and is currently trading at 102.4 per dollar.
