Global central banks are cutting interest rates to stimulate economic growth, counteract financial instability, and fight off recession fears, but this strategy is fraught with risks and potential long-term drawbacks.
Japan's inflation rate is accelerating, prompting the Bank of Japan to consider tightening its monetary policy to prevent the economy from overheating while ensuring sustainable growth.
The US Federal Reserve's cautious optimism coupled with aggressive readiness, dubbed 'dove with sharpest claws,' fortifies the dollar's resilience amid post-pandemic recovery and geopolitical tensions.
Japan's 10-year bond yield experienced a fall amid speculations about the Bank of Japan's (BOJ) slower pace of rate hikes. Investors closely monitor the BOJ's monetary policy adjustments, especially its decision to reduce bond purchases and its extensive $5 trillion balance sheet by July.
