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Asia week ahead: Central bank meetings in Japan, China, Indonesia, Taiwan, and Philippines
The Bank of Japan is expected to keep its policy rate at 0.5%. The real focus will be on the interim review of the size of Japanese government bond purchase operations. Despite speculation that the BoJ may reduce its quarterly purchases from 400 billion yen to 200 billion yen, we believe it will maintain the current pace. On the data front, soft activity data is anticipated. Exports and machinery orders likely contracted in May due to US tariffs and global uncertainty. Inflation is expected to remain above 3%, especially core prices, which may rise from 3.5% year on year in April to 3.7% in May amid broad-based ... (full story)