Global Economy Endures War Shock—So Far

At its meeting today, the Board decided to leave the cash rate target unchanged at 4.35 per cent. Inflation picked up materially in the second half of 2025, and information since ...

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided, by a 7-1 majority vote, to set the following guideline for money market operations for the intermeeting period: The Bank will encourage the uncollateralized overnight call rate to remain at around 1.0 percent. In accordance with the change in the guideline for money market operations, the Bank decided, by a 7-1 majority vote, to change the interest rates applied to its measures. (1) Interest rate applied to the complementary deposit facility The interest rate applied to the complementary deposit facility (the interest rate applied to current account balances held by financial institutions at the Bank, excluding required reserve balances) will be 1.0 percent.3 (2) Basic loan rate4 The basic loan rale applicable under the complementary lending facility will be 1.25 percent. BOJ: BOARD MEMBER ASADA OPPOSED RATE DECISION ... BOJ board members Takata and Tamura oppose outlook description on prices Plan for the Outright Purchases of Japanese Government Bonds At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan reviewed the developments in and functioning of the Japanese government bond (JGB) markets and discussed its approach to future JGB purchases. In principle, long-term interest rates are to be formed in financial markets, and it is appropriate for the Bank to conduct the purchases of JGBs in a predictable manner, while allowing enough flexibility to support stability in the JGB markets. Based on this thinking, with a view to improvement of market functioning and stability of the JGB markets, the Bank decided, by a 7-1 majority vote, to conduct the outright purchases of JGBs as BOJ: WILL KEEP RAISING POLICY RATE AMID ECONOMIC ACTIVITY, PRICES, FINANCIAL CONDITIONS DEVELOPMENTS ...

RBA Gov Bullock: Does Not Rule Out Further Tightening If Needed - Inflation Remains Too High -Flow Of Data Consistent With Our Expectations -Reports Of Peace Deal In Middle East Is Welcome News -Resolution Could Take A Long Time -Oil Prices Remain High -Some Signs Higher Costs… RBA Governor Bullock: Lower inflation requires weaker demand. RBA Governor Bullock: Economy can grow at trend only with stable inflation. RBA’s Bullock: Inflation still carries upside risks; monthly data volatile, more tightening possible.

Japan finance minister holds back comment on BOJ decision pending deputy governor briefing. Japan finance minister: Responsibility lies in sound economic and fiscal policy management.

BOJ Deputy Governor Uchida: Moderate recovery in Japan, with some areas still weak. BOJ Deputy Governor Uchida: Significant slowdown risk has decreased. BOJ Deputy Governor Uchida: Economy developing largely in line with baseline outlook. BoJ's Uchida: real interest rates have been negative mainly in short-, medium-term zone BoJ's Uchida: Need to pay close attention to how Middle East developments affect financial, FX markets, and the Japanese economy and prices