China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
Japan has cleared a crucial threshold for officially declaring an end to long-term deflation, according to Economy Minister Ryosei Akazawa. This optimism could influence the Bank of Japan’s (BOJ) approach to future interest rate hikes.
Inflation has exceeded the BOJ’s 2% target for nearly three years, but the government has hesitated to declare deflation over, viewing it as a prolonged period of weak wage growth and subdued consumption. Akazawa stated that all four key indicators—the output gap, consumer price index, GDP deflator, and unit labor costs—have turned positive. Notably, Japan’s output gap turned positive in Q4 2024 for the first time in six quarters, signaling strong demand.
“We hope the BOJ closely communicates with the government and continues guiding policy appropriately to ensure sustainable inflation,” Akazawa said.
The BOJ raised interest rates to 0.5% in January after ending its decade-long stimulus, citing progress toward achieving stable 2% inflation. However, the government has remained cautious about officially declaring an end to deflation, as doing so might limit its ability to introduce further fiscal stimulus.
Some analysts suggest that announcing the end of deflation could boost political support ahead of Japan’s upper house election in July. Whether this declaration leads to further monetary tightening remains to be seen, but Japan’s economy appears to be on a solid recovery path.
