Asian Central Banks' Rate Decisions Draw Market Attention

According to Odaily, as global attention remains on Donald Trump, the interest rate decisions of three Asian central banks are also vying for market focus. Following a statement by Bank of Japan Governor Kazuo Ueda last week about discussing a rate hike, analysts at Maybank predict that the Bank of Japan is likely to raise rates by 25 basis points to 0.50% on Friday. Officials have recently indicated that a clearer U.S. policy direction is another crucial factor. Maybank suggests that the yen might strengthen, as the current U.S.-Japan yield differential implies the USD/JPY rate will fall below 150. Meanwhile, the Monetary Authority of Singapore is expected to ease its policy on Friday by slightly lowering the slope of the Singapore dollar exchange rate, citing a benign inflation outlook and a more uncertain global environment. The Central Bank of Malaysia is anticipated to maintain its current stance on Wednesday, given the strong economic growth and potential inflation rise.