FxWirePro: Daily Commodity Tracker - 21st March, 2022 
China Holds Loan Prime Rates Steady as PBOC Maintains Cautious Monetary Policy 
Japan Coalition Urges BOJ Independence as Sales Tax Cut Plan Advances 
Bank of Korea Expected to Hold Interest Rates at 2.50% Through 2026 Amid Currency and Housing Market Risks 
BOJ Rate Hike to 1% by June in Focus as Inflation and Weak Yen Pressure Mount 
RBNZ Holds OCR at 2.25% as Inflation Set to Ease Toward 2% Target 
RBA Signals Further Interest Rate Hikes if Inflation Persists, Says Governor Michele Bullock 
BOJ Governor Ueda Meets PM Takaichi as Markets Eye Possible Rate Hike 
Bain Capital Secures RBI Approval to Acquire Up to 41.7% Stake in Manappuram Finance 
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.
