Macro

• China & HK allocations among Global funds have hit new lows, with 25.5% of funds avoiding the region entirely and a record 79.6% underweight versus the benchmark.
• In the six months leading up to recent stimulus measures, another 5.4% of funds fully exited their China & HK exposure.
• Tencent and Alibaba are well below their 2020 highs, while AIA Group ownership moved lower and China Construction Bank continues its long-term decline

• Markets have taken on a risk-on tone on the news of global central bank stimulus. Gold has rallied the most as real rates fell, equities rose and bond prices fell.
• But the market’s risk-on psychology appears to be stretched and fragile.
• While the long-term bullish trend is quite real, the consensus is susceptible to reversals should growth disappoint in the near-term.

• There is a possibility of a repeat of the events in 2000 Q4 and 2001 Q1, when economic conditions unravelled quickly and labour hoarding crushed corporate profits and equity valuations.
• Lower interest rates will typically support equities unless the corporate sector has committed large and persistent strategic mistakes, such as excessive investment or bad lending.
• Unfolding political events could push the economy into recession, despite the best efforts of the Fed. Profligate fiscal policy conduct could present challenges for the economy after the election.

• Bonds expect a second half-point cut at the next FOMC meeting, which is rare outside of recessions, while stocks are cheering the prospects of a soft landing.
• As the Fed’s focus shifts from its price stability mandate to its full employment mandate, investor expectations will depend on the strength of the jobs market.
• As leading indicators of employment weaken, the upcoming September Jobs Report could prove to be pivotal to market psychology.

• Hong Kong dollar is strengthening as demand picks up and the carry trade unwinds quickly.  Put/Call Skew declines for HSTech Index as traders sentiment reverses.
• Hengan International Group (1044 HK) and Galaxy Entertainment Group (27 HK) had breakouts from declining wedge patterns and have now formed new uptrends.
• Wuxi Biologics (2269 HK) had a breakout reversal from a U-shaped pattern indicating more upside.  The stock’s 200 DMA may provide little resistance to further re-rating.

• Lower fuel prices will be a key factor in September’s HICP, pulling y/y rate to 1.9%, which would be lowest in three years and despite little change in services inflation.  
• Indeed, the risk is of an even lower outcome. This may be short-lived given adverse base effects later this year before a more sustained fall below 2% occurs through 2025. 
• But the September projection is in line with ECB thinking as it leads to a Q3 outcome of 2.2%. 

• US employment report will be the focus. EUR/USD upside looks more restricted. Still scope for JPY and AUD gains.
• The US employment report at the end of the week is the main focus. We look for a significantly stronger than consensus report, with a 180k rise in non-farm payrolls
• This suggests an underlying USD positive pict ure for the week, but the payroll number isn’t released until Friday.

• A review of recent events/data impacting our investment themes or outlook
• China announces a barrage of  fiscal and monetary stimulus plans
• New LDP leader and Japan Prime Minister impacts the markets

• August’s PCE price data, up 0.1% both overall and core (0.09% and 0.13% respectively before rounding) shows the core rate softer than expected, and well below the 0.3% core CPI.
• Personal income and spending gains 0.2% and are both on the low side of expectations but a narrower August advance goods trade deficit of $94.3bn from $102.8bn leaves positive.
• Yr/Yr PCE prices fell to 2.2% from 2.5%, weaker than expected, though the core rate at 2.7% from 2.6% is slightly stronger than expected.

• Hello everyone, and welcome back to our weekly positioning update!
• Everything is about China these days, with both the PBoC and the Politburo preparing stimulus packages to save the Chinese economy from its nasty downturn.
• While the stimulus initiatives are not very large, relatively speaking (roughly a percentage of GDP on average across stimulus packages), markets clearly see the heavy amounts of proposed stimulus as a “whatever it takes” signal, sparking a strong momentum trend in the Hang Seng and China proxies.

• September’s month-end is always a significant period for xCcy markets, primarily due to window-dressing by financial institutions and the upcoming 3-month rolling into year-end.
• This leads to heightened volatility and liquidity adjustments, particularly noticeable around the xCcy basis.
• How bad will it be this year?

• What exactly are medium term lending facility, short term lending facility, Loan Prime Rates, Required Reserve Ratio, 7-day reverse repo rate, and 14-day reverse repo rate?
• The PBOC measures this week are wider and more all-rounded, compressing what is usually a month or two of actions into one single week.
• The intensity of  measures will give hope and expectation to even more measures to come and turn the long-term down trend of Chinese stocks to an upward momentum in short-term.

• European manufacturing PMIs signal recession, with Germany’s reading at 40.3, indicating deep trouble in the sector.
• China’s moderate stimulus measures aim to stabilize the property sector without excessive debt or household stimulus.
• Vietnam’s economic outlook is optimistic, driven by political shifts and expected pro-growth policies under General Secretary To Lam.

• USD strength is ebbing across the board, which provides a positive force for most EM currencies on a spot basis. 
• However, where inflation differentials are large, the downward pressure will remain in 2025 e.g. Turkish Lira (TRY)
• Where inflation differentials are modest against the U.S., but interest rate differentials are wider then this can mean modest appreciation – especially if the starting point is an undervalued currency. 

• China’s stimulus has positively impacted sentiment, although this is not the case in the Euro area due to falling PMIs and unexpectedly weak flash inflation releases. The Fed’s dovish pricing extremes have become less exceptional.
• The upcoming week’s data may further this trend, with the Euro area HICP tracking low and US pricing potentially susceptible to another drop in unemployment. Policy decisions will only be coming from Colombia and Poland.
• The most significant event of the week will be Powell’s speech.

• The biggest fuss of the market this week is the intensity of a number of PBOC’s measures, which, unconventionally, were jam-packed.
• In particular the 800 billion RMB fund directly loaned to security broker and corporate repurchases is a new and effective measure to revive the falling stock market.
• Whether the serial of different types of rate cuts and the stock market funds can revive the economy will take a few month longer to see.

• The U.S. economy is slowing, with the critical question being whether this is a soft or harder landing.
• Our broad analysis leaves us inclined to the soft landing view into 2025, though we shall watch real sector data closely over the next 3-6 months to check the trajectory. 
• Elsewhere, European growth should recover into 2025. Finally, China growth is set to slow to 4% in 2025, as slowdown in consumption adds to the drag from the residential property.

• WTO chief Ngozi Okonjo-Iweala’s request goes unheeded  
• EPP agriculture chief quotes EC chief offering temporary solution  
• EUDR system to be opened for user registration in November

• M&A / In Depth: Can China create its own Goldman Sachs with brokerage mega-merger?

• China-U.S. /: Asia New Vision Forum: China-U.S. ties should be ‘managed strategic competition,’ Rudd says

• Investment /: Asia New Vision Forum: Fresh stimulus package ‘great news’ for startups, VC investor says

• HK/China markets have entered a Bull market trend which was sparked by Beijing’s multi-faceted stimulus program.
• An overhang of extreme pessimism on China’s economy and markets will gradually dissipate as the media/analyst narrative will follow the market higher.
• As discussed in previous insights, a turn in sentiment is the key to not only moving the market but also to reviving the Chinese consumer.

• Welcome to our weekly EM/China Watch, where we examine the Chinese market from the perspective of Western investors.
• It’s been a significant day in China with the announcement of a range of measures by PBoC Governor Pan Gongsheng.
• China’s economic stimulus plan includes a series of monetary easing measures.

• The Chinese markets have warmly welcomed this morning’s news that the People’s Bank of China (PBOC) plans to introduce significant stimulus measures, surpassing market expectations.
• The most notable measure involves reducing borrowing costs on up to USD 5.3 trillion in mortgages and easing rules for second-home purchases.
• This has brought growth back into the spotlight.

• We begin with the Ifo Employment Barometer, which took a sharp downward turn, reinforcing the recessionary signals from last month’s data.
• In our view, it’s only a matter of time before Lagarde shifts her focus from inflation to employment, much like the Fed has done.
• Our models suggest year-over-year inflation will reach 2% by early 2025, making employment the likely next priority.

• The 2021 power shortage in China has captured the market’s attention, and begs the question of whether this coming winter is safe against blackout.
• Markets are concerned that any extended power outage may impose additional and even bigger headwinds to the Chinese economy on top of the looming Evergrande debt crisis and regulatory oversight.
• The 2021 power shortage in China was caused by the inability of state grids to raise electricity prices and a supply-demand shortfall in energy production sources, in particular coal. 

• Huy Anh Natural Rubber appoints Koltiva to help it  
• VRG holds training as per PEFC ST 2002-1:2024 Module Standard  
• Experts call for a national support website

• Crowding out has regained relevance post-pandemic, as large fiscal deficits put upward pressure on interest rates, contrasting with the post-GFC liquidity trap narrative.
• Global capital markets can no longer mask crowding out because simultaneous fiscal deficits in major economies constrain the potentially offsetting capital flow.
• The UK is opting for state-led interventions, crowding out the private sector by design, while the US stimulates private investment via public spending initiatives.

• Direct Reduced Iron (DRI) is playing a significant role in India’s steel industry, accounting for 33% of total steel output
• India’s DRI market is characterized by rapid growth driven by steel production targets and sustainable steel making practices
• DRI production is concentrated in central and eastern parts of India, with states like Chhattisgarh and Odisha being prominent producers and trade hubs.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• For the week ending 20/Sep, US crude inventories declined by 4.5m barrels, surpassing expectations of a 1.3m barrel drawdown. Gasoline and distillate stockpiles also decreased more than analyst estimates.
• US natural gas inventories rise 47 Bcf for the week ending 20/Sep, lower than analyst expectations of a 52 Bcf buildup. Inventories are 7.1% above the 5-year seasonal average.
• BP and Shell experienced rating downgrades and target price reductions, while TotalEnergies and Exxon Mobil saw upward revisions in their target prices.

• Asia New Vision Forum /: Dialogue between Hu Shuli and Heng Swee Keat on tackling global challenges 
• Central banks /: Asian central banks in no rush to follow Fed in cutting rates
• TikTok /: TikTok Music comes to the end of the track in strategy shift

• The fabled  PBoC Put is finally out in the open
• Is there a floor under the stock market, if not the property market?
• Has the asymetric opportunity now gone with this recent rally?

• The Riksbank cut its policy rate by 25 basis points to 3.25%, in line with consensus, and signaled potential further cuts at a faster pace if inflation and economic activity remain stable.
• Future rate cuts are likely, with two more reductions expected in 2025, contingent on sustained favourable inflation developments and improved economic activity.
• Uncertainty remains due to geopolitical risks, global economic conditions, and energy price volatility, which could alter the trajectory of monetary policy adjustments.

• The Fed’s 50bp rate cut was remarkably forceful relative to the resilient data. It relies on rates being far above their neutral setting despite no evidence for this tightness.
• Historical parallels to 1998 are mounting with the forceful start and conveniently timed political support. A repeat would mean an early pause and hikes returning in 2025.
• Brazil has tracked a year ahead of the Fed in the last hiking and cutting cycles. Its latest hike would also be consistent with the Fed following the 1998 scenario.

• There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. 
• In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&T and LG Corp) are surprising exclusions in the index.
• There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).

• Indonesia’s exposure among EM funds is beginning to taper, with 2.3% of funds closing positions and 6.3% shifting to underweight over the past six months
• Bank Central Asia and Bank Rakyat reached record ownership highs this year but have since faced closures by select funds
• On the fund level, closures have outpaced openings, led by Aubrey and BlackRock, with the majority of funds now holding allocations below 5%.

• Indonesia has been the recipient of significant investment flows for foreign investors with more of a “risk on” environment with a large portion flowing into Indonesian banks. 
• Indonesia stacks up from an investment perspective with a stable political environment, solid GDP growth of around 5% YoY, rising flows of FDI, and a more stable IDR.
• Despite the JCI knocking on all-time highs, valuations continue to look attractive with prospects of a better 2H2024 and lower interest rates. Top picks: Banks, property, consumer, and selective elsewhere. 

• The Federal Reserve’s larger-than-expected rate cut suggests that it saw an uncertain trajectory for the US economy with downside risks.
• Fed policy is in trial and error mode until it lands on a new equilibrium. There will be more turbulence and uncertainty for Asia and the rest of the world.
• For Asia, the immediate impacts will be felt in the currency and other financial markets. Real-economy impacts will be modest for now as monetary policy takes time to work.

• ADD slapped on the US, the EU, the UK, and Singapore imports
• ADD probe initiated against Canada, Japan and India
• Russia to be a major beneficiary of the measures

• As we enter the historically weak 7–10 days for markets, it’s a good time to be cautious.
• Banks are also preparing for quarter- and year-end window dressing, which tends to drain liquidity as they park USDs at the Fed to clean up balance sheets.
• We expect $225 billion to leave the market by month’s end, tightening liquidity more than in 2023 but less than in 2022.

• US natural gas prices rose by 5.6% for the week ending 20/Sep, driven by a shrinking storage surplus and an improved demand outlook.
• Henry Hub Put/Call volume ratio rose to 1.69 (20/Sep) from 1.45 the previous week as put volumes rose by 102.7% WoW, while call volumes grew by 74.4%.
• Put OI surged for contracts expiring on 25/Sep, Oct, and Nov. Call OI rose for expiries on Dec, Jan, Feb, and Mar.

• China has surprised and cut the 7 day reverse repo rate by 20bps to 1.5%, with a 50bps cuts in the RRR rate. 
• Combined with other measures this is a step-up in support and could help GDP on the margin, but the measures are not game changers as monetary policy is currently ineffective. 
• While further fiscal easing will likely arrive in the next few weeks, we still maintain our forecast of 4.0% GDP growth for 2025.

• Opec+ is forced to delay the unwinding of its voluntary cuts due to ongoing weak demand for oil.
• Without a significant geopolitical shock, Brent is likely to remain below USD70 per barrel.
• This price trend for Brent is expected to continue until at least mid-2025.

• Toby Rhodes became interested in Japan due to his grandfather’s stories about the country and its culture
• Toby is the co-founder and managing partner of Konami Capital, a value and quality oriented manager of small cap Japanese equities
• He discusses the past false starts of Japanese activism, recent changes in corporate governance, and Konami’s process for taking advantage of opportunities in the Japanese market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Gold prices have been supported by rising interest rates and central bank demand, but investor flow is now becoming the key driver for further sustained rally.
• Physical demand in China has decreased, but investor demand, particularly in ETFs, has been increasing over the past four months.
• The upcoming direction of gold prices will depend on the pace of Fed cuts and the shift in investor ownership from money market funds to gold ETFs.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Happy Sunday from Copenhagen.
• We made a major U-turn over the summer to align ourselves with the weakening of the labor market in the US.
• Thankfully, our nowcasting techniques give us a time-edge over the markets in assessing these peaks and troughs in the economic cycle ahead of major trend turns.

• Happy Friday from Copenhagen!We haven’t had the best week, but we are thankfully still doing well in trades trending in a cutting cycle, such as the steepener (Z4 vs.H7).
• The market is still grappling with a lack of true conviction in a slowdown of the US economy, and we share that sentiment.
• Interestingly, it is normal to see weak hiring ahead of the election in an election year, and if history is any guide, Oct-Dec will prove to be much stronger hiring-wise than the past 1-2 quarters.

• US oil and gas rig count fell by two to 588 for the week ending 20/Sep, the fifth decline in six weeks, after rising by eight last week.
• The US oil rig count stayed flat at 488 after rising by five last week. Gas rigs fell by one to 96, marking its fourth decrease in five weeks.
• For the week ending 20/Sep, US energy producers added two rigs in Texas. Conversely, they cut one rig each in Colorado, Louisiana, New Mexico, and Utah.   

• Adverse weather impacts Chinese prices   
• Arbitrage buying spurs prices up  
• TSR inventory drops in September 

• SGX Iron Ore futures closed the week $1.38 lower, with wide trading range of $5.85/ton in a week filled with economic releases including FOMC and PBoC rate decisions.
• Momentum indicators are neutral; RSI at 37.70 signals potential upside, while the price remains below key moving averages, including the 9, 21, 50, 100, and 200-day SMAs.
• Prices broke below key volume profile support at $91.27 and may see a short-term rebound to $90/ton due to limited trading volume below this level.

• This week we look at Shopee’s tie-up with YouTube on e-commerce in Indonesia, MR DIY’s next plan to list in Indonesia, and GoTo helping to drive free school meals programme.
• We also look at the potential pitfalls of AI in the banking industry specifically for micro-lending, where the data may not be reliable, leading to a higher incidence of NPLs. 
• CrossASEAN Ground Zero is a thematic weekly product that focuses on key Southeast Asian themes and technology trends with a core focus on Indonesia.

• PMIs crashed in the Euro area and slowed in the UK yet broadly sustained a rapid pace in the US, which remains in rude relative health near its highs.
• Price balances also increased as forceful monetary easing into resilient demand risks reflating inflationary pressures from a hoped-for soft landing into no landing.
• US unemployment’s slight trend rise does not demand much easing to resolve. Dovish market pricing increasingly risks policy needing to reverse, like Brazil already has.

• According to the latest BofA fund manager survey, investors continue to sell commodities.
• Allocation-wise we’re now back at levels we were at the beginning of the pandemic back in 2020.
• Long commodities is now a contrarian trade again.

• The past week saw insights on GoTo Gojek Tokopedia (GOTO IJ), Adaro Energy (ADRO IJ), Bangkok Dusit Medical Services (BDMS TB), Lippo Karawaci (LPKR IJ), and Gajah Tunggal (GJTL IJ).
• There were also macro insights on the Singapore Economy, Malaysian Politics, and the Indonesian economy, as well as Helitap on natural rubber. 
• The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated substantive, and actionable insights, macro and equity bottom, from across Southeast Asia.

• The Fed has begun its easing cycle with an aggressive 50 basis points reduction in its policy rate, but, thereafter, conduct will remain data dependent.
• Lower-Income household stress has become increasingly evident over the past year, particularly in subprime auto loans and credit cards. Lenders have tightened lending standards and accepted higher bad debt charge-offs. 
• Lower-Income households will benefit more directly from the Fed’s policy shift due to their higher exposure to liabilities priced off short-term interest rates.

• The stock market is exhibiting strong positive price momentum, but in the face of a seasonally weak period for stocks.
• In Finance Land, seasonality determines the climate, and the combination of fundamental, technical and macro factors determine the day-to-day weather.
• In the very short term, the weather is bullish, but stock prices are ultimately determined by the growth and interest rate outlook.

• A U.S. economic soft landing has become the overwhelming consensus, what could possibly go wrong? A growing chasm is appearing between bond and stock market expectations.
• The bond market is expecting nearly 2% in rate cuts to September 2025, which signals recession, while the stock market is expecting strong earnings growth amidst elevated P/E valuations.
• We find that conditions are supportive of a soft landing.

• With increasing market volatility, base metals continue their rocky weekly performance. Copper was up marginally maintaining a level over 9000 USD/ton.
• Copper inventories declined at the exchanges, with ~428k tons combined at Comex, LME, and Shanghai, down almost 9% in the last two weeks.
• Read our recent initiation on Antofagasta PLC (ANTO LN), contrasting it with Southern Copper (SCCO US) titled Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner. 

• At the September 20 meeting, the BoJ keep rate unchanged at 0.25% and guide there will be more tightening by suggesting the current inflationary trajectory aligns with BoJ’s forecast
• . The BoJ has taken a hawkish tilt in the July meeting by providing a hawkish forward guidance.
• “If outlook for economic activity and prices are realised, will continue to raise policy rates and adjust degree of monetary accommodation accordingly”

• Iron underperformed the commodity complex, falling 1.2% WoW, vs the average complex performance of 3% WoW. 
• PBOC rate cuts have yet to spur borrowing significantly. Despite the seasonal uptick, loan growth has trended negatively.  
• We remain cautious till China shows any sign of a pick-up in demand. Indicators like mill margins and property/auto demand continue to be uninspiring. 

• The July CPI was notable for the clear and larger-than-expected fall in services inflation,  driven by a fall in restaurant/hotel inflation. This is a bellwether indicator of price persistence. 
• The August data showed mixed signs on such a basis.  Indeed, services inflation rose back 0.4 ppt to 5.6%, up from a two-year low but still below the BoE projection.
• Indeed, the core would have fallen below 3% without airfares.  Moreover, restaurant inflation hit a new cycle low amid generally softer price pressures in which eight (of 12) CPI components fell.

• Focus on PMIs to confirm more risk positive market tone. Some downside risks in Europe, particularly the UK. JPY weakness over the last week should fade.
• The week starts with the preliminary PMI data for September.  Despite a dip on Friday, the equity market showed a generally risk positive tone through the week.
• This was helped by a confident tone to the FOMC statement which foresaw only a modest slowdown with unemployment peaking at 4.4% and inflation under control.

• Welcome to our weekly EM Watch, where we examine Emerging Markets (with a particular focus on China) from the perspective of Western investors.
• It continues to be a rough month for anything linked to China.
• We have observed early signs of stabilization in China’s pollution data, which may indicate some level of stability at lower levels of industrial output.

• US ADD measure expected to be in force from Sept 27
• Bombarded by Chinese exports Canada too join ADD league
• Tesla exports from China faces ADD in Canada, EU excuses

• Punishment / In Depth: Punishing people for their relatives’ crimes comes under scrutiny in China Legal experts in China are pushing to reform a longstanding practice that can cause law-abiding citizens to lose their shot at joining the civil service, getting into certain university programs or the military if they happen to be related to a convicted criminal.
• The reform push has the potential to curtail the practice — known as collective punishment — that has been criticized for violating basic legal norms and putting a large proportion of China’s population at risk of being punished for the actions of another.
• FINANCE & ECONOMY PwC / PwC Hong Kong next in firing line over Evergrande scandal Penalties and lawsuits loom over PricewaterhouseCoopers’ (PwC) Hong Kong affiliate after China slapped its mainland counterpart with a record penalty last week for its fraudulent accounting for Hengda Real Estate Group Co.

• China’s 19 major domestic systemically important banks hold up well under most solvency and liquidity tests, though some capital shortfalls appear with a moderate or severe NPL sensitivity shock scenario.  
• The safety net would likely be capital injections including from central government as occurred with the largest 4 banks in 1997-04 or takeover and mergers.
• However, small and mid-sized banks shortfall of capital in the more severe sensitivity would test China authorities crisis management and response capacity.

• This week’s main mover is Fed’s surprised rate cut by 50bps. It shakes the market first day it came out and has a positive effect on following day trading.
• While S&P500 is up 1.97%, Hang Seng glitters with a 5.55% increase and break through the technical resistance at 18,000.
• We believe after the Fed rate hike, the entire Hong Kong stock market has changed. With the break through upward of 18,000, Hang Seng can go on to challenge 20,000.

• The Fed made a forceful 50bp rate cut despite data resilience, with concerns of over-easing due to excessive focus on politics and labour demand. Meanwhile, Brazil has begun reversing its rate cuts and the BoE is exercising caution.
• Next week, the dovish focus will shift to the SNB, Riksbank and Bank of Mexico. Fed speakers may moderate dovish extrapolated pricing after strongly encouraging it.
• Key inflation highlights to watch out for are France and Spain’s Flash HICP for September and the US PCE for August.

• Vietnam is streamlining transactions for foreign investors through market reforms as it seeks reclassification from frontier to emerging market status, a change that could drive substantial inflows into its equities.
• Vietnam’s strategic location, low labor costs, and “China Plus One” strategy make it a key player in global manufacturing. Strong domestic growth suggests equity upside.
• The iEdge Vietnam 30 Sector Cap Index provides exposure to Real Estate, Financial Services, and Manufacturing. The index’s forward P/E of 13.65 suggests strong earnings growth ahead.

• For the week ending 13/Sep, US crude inventories dropped by 1.6m barrels, surpassing the expected 0.2m barrel decline. Gasoline stockpiles grew less than forecasted, while distillate inventories rose more.
• US natural gas inventories rise 58 Bcf for the week ending 13/Sep, more than analyst expectations of a 53 Bcf buildup. Inventories are 8.6% above the 5-year seasonal average.
• Chevron, Occidental Petroleum, and Exxon Mobil see target price cuts. DBS Bank initiated a Buy rating on Schlumberger and Halliburton.

• The BOJ maintained its policy rate at 0.25%, consistent with expectations, sustaining globally accommodative financial conditions to support economic growth and wage inflation.
• Global economic conditions, domestic inflation trends, wage-price dynamics, and exchange rate fluctuations will influence future interest rate decisions.
• The BOJ’s current stance reflects a gradual approach to inflation management, focusing on monitoring wage growth and price stability before making significant policy adjustments.