The Bank of Japan will maintain its current monetary policy approach as underlying inflation remains below the 2% target, despite core consumer inflation staying above target for the 16th straight month in July, according to BOJ Governor Kazuo Ueda.
The Reserve Bank of Australia is expected to keep its key interest rate unchanged at 4.10% as inflation slows, but economists anticipate a final hike in the next quarter.
The Reserve Bank of Australia is expected to keep its key cash rate unchanged as inflation eases, while Asian markets show signs of revival due to China's efforts to support its property sector and wider economy.
The Bank of Japan's potential shift away from negative interest rate policy has ignited the Japanese Government Bond and currency markets, with the yen seeing its biggest rise in two months and the 10-year JGB yield reaching its highest point in almost a decade.
Japan's ruling party lawmaker Hiroshige Seko supports maintaining an ultra-loose monetary policy, following comments by the Bank of Japan governor that caused the yen and bond yields to rise.
Speculation is growing that the Bank of Japan may be moving away from ultra-loose policy and negative interest rates, with its policy meeting being the highlight of the week in Asian markets.
Federal Reserve officials are expected to keep interest rates unchanged at their policy meeting this week but will leave the door open for another rate hike, as they remain cautious about inflation and aim to keep financial conditions tight.
The Bank of Japan is expected to maintain ultra-low interest rates and reassure markets that monetary stimulus will continue amidst China's economic struggles and the global impact of US interest rates.
The Swiss National Bank keeps interest rates unchanged at 1.75% and hints that further tightening may be necessary to ensure price stability, while also warning of a possible global economic slowdown and addressing the risk of energy shortage in Europe.
The Bank of Japan (BOJ) may become the most significant uncertainty factor in global markets as it potentially unwinds its negative interest rate policy and yield curve control, which could have knock-on effects on risk assets, including cryptocurrencies.
Central banks, including the US Federal Reserve, European Central Bank, and Bank of England, have pledged to maintain higher interest rates for an extended period to combat inflation and achieve global economic stability, despite concerns about the strength of the Chinese economy and geopolitical tensions.
Asia-Pacific markets fell as the Bank of Japan kept rates unchanged and noted a "moderate recovery" in the economy, while Japan's private sector activity expanded at its slowest pace since February and the country's August inflation rate remained above the BOJ's target for the 17th straight month.
The Japanese yen weakened and stocks and bonds remained under pressure as investors prepared for U.S. interest rates to remain high, despite the Bank of Japan sticking to ultra-easy monetary policy and making no changes to its outlook.
Monetary policy differences between the Federal Reserve and the Bank of Japan will continue to impact the Japanese yen, with the US dollar maintaining its strength, while key levels to watch for USD/JPY are discussed in this article.
The Reserve Bank of India is expected to maintain its policy rates at the upcoming monetary policy review meeting due to high retail inflation and the US Federal Reserve's hawkish stance.
Bank of Japan Governor Kazuo Ueda warns of uncertainty in companies' ability to raise prices and wages, and emphasizes the need to maintain loose monetary policy, while also expressing concerns about the economic outlook abroad, particularly in relation to U.S. interest rate hikes and China's sluggish growth.
Speculation that the Bank of Japan may abandon its negative rate policy raises concerns for Japanese homebuyers who rely on floating-interest mortgages.
The Reserve Bank of India (RBI) is expected to keep the benchmark interest rate unchanged at 6.5% in its upcoming monetary policy review due to elevated inflation and global economic factors.
The Bank of Japan is considering the eventual end of its ultra-loose monetary policy, with some policymakers discussing the conditions and timing of a future exit, according to a summary of opinions from their September meeting, leading to a rise in government bond yields.
Indonesia's central bank, Bank Indonesia, is expected to maintain stability in currency and bond markets by holding interest rates steady at its upcoming policy meeting as it aims to bolster confidence in the country's economy and prevent further market turmoil.
Japan's central bank is under pressure to reconsider its ultraloose monetary policy due to factors such as a weak yen, post-pandemic inflation, and the Russia-Ukraine war.
