Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
IMF Calls for Budget Discipline in Japan Amid Rising Interest Rates
As Japan considers additional spending plans, the International Monetary Fund (IMF) advised on Friday that the government should finance new initiatives within its existing budget rather than through debt issuance. This guidance comes as Japan’s central bank, the Bank of Japan (BOJ), contemplates gradual interest rate hikes.
IMF Emphasizes Fiscal Responsibility
With the BOJ shifting toward a tighter monetary policy, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, stressed the importance of fiscal consolidation. “Given that monetary policy normalization is underway, it is essential for the fiscal side to start consolidation, which is long overdue,” Srinivasan remarked in an interview.
Japan’s New Spending Package
Prime Minister Shigeru Ishiba has announced plans for a large-scale spending package aimed at alleviating household financial pressure. However, he has not disclosed specific funding strategies. Srinivasan advised that any financial support should be “targeted” and financed within Japan’s budget to avoid exacerbating the country's already substantial public debt.
Bank of Japan’s Rate Hike Approach
The BOJ maintained its ultra-low interest rate at 0.25% but has signaled readiness to raise rates if Japan approaches its 2% inflation target sustainably. “A gradual, data-dependent approach is appropriate,” Srinivasan noted, recognizing potential inflationary risks.
Yen Volatility and Japan’s Debt Challenge
Japan’s prolonged low-interest environment has contributed to yen depreciation, impacting import costs and retail prices. Srinivasan acknowledged that market volatility may persist given uncertainties in Japan's and the U.S. economies. Japan’s public debt remains among the highest globally, driven by past spending and rising social welfare costs.
