BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
RBNZ Holds Interest Rates Steady but Signals More Hikes Ahead in 2026 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
In China, data for FX reserves added to signs that the Chinese business cycle is bottoming. FX reserves fell by USD43.3bn, which was less than expected and a much smaller decline than in August, when reserves fell a record USD93.9bn. The valuation effects are limited as the currency movements have been small in September. Hence, intervention has been much smaller in September and the same goes for capital outflows.
Last week, the official Chinese manufacturing PMI showed signs of stabilisation and this, in combination with declining capital outflows, is underpinning risk appetite.
"We believe the positive sentiment in emerging markets can continue in the short run with positive spillover to Western markets too", says Danske Bank.
